Correlation Between HUMANA and Morgan Stanley
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By analyzing existing cross correlation between HUMANA INC and Morgan Stanley Global, you can compare the effects of market volatilities on HUMANA and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Morgan Stanley.
Diversification Opportunities for HUMANA and Morgan Stanley
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and Morgan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Morgan Stanley Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Global 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley Global has no effect on the direction of HUMANA i.e., HUMANA and Morgan Stanley go up and down completely randomly.
Pair Corralation between HUMANA and Morgan Stanley
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.76 times more return on investment than Morgan Stanley. However, HUMANA INC is 1.31 times less risky than Morgan Stanley. It trades about -0.09 of its potential returns per unit of risk. Morgan Stanley Global is currently generating about -0.11 per unit of risk. If you would invest 8,052 in HUMANA INC on November 28, 2024 and sell it today you would lose (153.00) from holding HUMANA INC or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Morgan Stanley Global
Performance |
| Timeline |
| HUMANA INC |
| Morgan Stanley Global |
HUMANA and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Morgan Stanley
The main advantage of trading using opposite HUMANA and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
| Morgan Stanley vs. Ashmore Emerging Markets | Morgan Stanley vs. Barings Emerging Markets | Morgan Stanley vs. Doubleline Emerging Markets | Morgan Stanley vs. Transamerica Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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