Correlation Between HUMANA and Mfs International
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By analyzing existing cross correlation between HUMANA INC and Mfs International Growth, you can compare the effects of market volatilities on HUMANA and Mfs International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUMANA with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mfs International.
Diversification Opportunities for HUMANA and Mfs International
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Mfs is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth and HUMANA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUMANA INC are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of HUMANA i.e., HUMANA and Mfs International go up and down completely randomly.
Pair Corralation between HUMANA and Mfs International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 102.05 times more return on investment than Mfs International. However, HUMANA is 102.05 times more volatile than Mfs International Growth. It trades about 0.07 of its potential returns per unit of risk. Mfs International Growth is currently generating about 0.06 per unit of risk. If you would invest 8,074 in HUMANA INC on September 4, 2024 and sell it today you would lose (39.00) from holding HUMANA INC or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.54% |
| Values | Daily Returns |
HUMANA INC vs. Mfs International Growth
Performance |
| Timeline |
| HUMANA INC |
| Mfs International Growth |
HUMANA and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mfs International
The main advantage of trading using opposite HUMANA and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mfs International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mfs International will offset losses from the drop in Mfs International's long position.| HUMANA vs. Usio Inc | HUMANA vs. MACOM Technology Solutions | HUMANA vs. Amkor Technology | HUMANA vs. Analog Devices |
| Mfs International vs. Mirova Global Green | Mfs International vs. Rational Strategic Allocation | Mfs International vs. Semiconductor Ultrasector Profund | Mfs International vs. Fm Investments Large |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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