Correlation Between HUMANA and Putnam International
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By analyzing existing cross correlation between HUMANA INC and Putnam International Equity, you can compare the effects of market volatilities on HUMANA and Putnam 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 Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Putnam International.
Diversification Opportunities for HUMANA and Putnam International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Putnam is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Putnam International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International 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 Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of HUMANA i.e., HUMANA and Putnam International go up and down completely randomly.
Pair Corralation between HUMANA and Putnam International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.63 times more return on investment than Putnam International. However, HUMANA INC is 1.59 times less risky than Putnam International. It trades about -0.11 of its potential returns per unit of risk. Putnam International Equity is currently generating about -0.21 per unit of risk. If you would invest 8,111 in HUMANA INC on August 28, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
HUMANA INC vs. Putnam International Equity
Performance |
| Timeline |
| HUMANA INC |
| Putnam International |
HUMANA and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Putnam International
The main advantage of trading using opposite HUMANA and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Putnam 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 Putnam International will offset losses from the drop in Putnam International's long position.| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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