Correlation Between HUMANA and Mondrian Global
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By analyzing existing cross correlation between HUMANA INC and Mondrian Global Equity, you can compare the effects of market volatilities on HUMANA and Mondrian Global 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 Mondrian Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Mondrian Global.
Diversification Opportunities for HUMANA and Mondrian Global
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Mondrian is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Mondrian Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondrian Global Equity 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 Mondrian Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondrian Global Equity has no effect on the direction of HUMANA i.e., HUMANA and Mondrian Global go up and down completely randomly.
Pair Corralation between HUMANA and Mondrian Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Mondrian Global. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.06 times less risky than Mondrian Global. The bond trades about -0.04 of its potential returns per unit of risk. The Mondrian Global Equity is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,315 in Mondrian Global Equity on September 12, 2024 and sell it today you would earn a total of 179.00 from holding Mondrian Global Equity or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.57% |
| Values | Daily Returns |
HUMANA INC vs. Mondrian Global Equity
Performance |
| Timeline |
| HUMANA INC |
| Mondrian Global Equity |
HUMANA and Mondrian Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Mondrian Global
The main advantage of trading using opposite HUMANA and Mondrian Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Mondrian Global 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 Mondrian Global will offset losses from the drop in Mondrian Global's long position.The idea behind HUMANA INC and Mondrian Global Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mondrian Global vs. Dodge Global Stock | Mondrian Global vs. Franklin Mutual Global | Mondrian Global vs. T Rowe Price | Mondrian Global vs. HUMANA INC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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