Correlation Between HUMANA and Emerging Markets
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By analyzing existing cross correlation between HUMANA INC and Emerging Markets Fund, you can compare the effects of market volatilities on HUMANA and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Emerging Markets.
Diversification Opportunities for HUMANA and Emerging Markets
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Emerging is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Emerging Markets go up and down completely randomly.
Pair Corralation between HUMANA and Emerging Markets
Assuming the 90 days trading horizon HUMANA is expected to generate 3.61 times less return on investment than Emerging Markets. But when comparing it to its historical volatility, HUMANA INC is 1.74 times less risky than Emerging Markets. It trades about 0.01 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,469 in Emerging Markets Fund on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Emerging Markets Fund or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
HUMANA INC vs. Emerging Markets Fund
Performance |
| Timeline |
| HUMANA INC |
| Emerging Markets |
HUMANA and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Emerging Markets
The main advantage of trading using opposite HUMANA and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Emerging Markets vs. Franklin Mutual Global | Emerging Markets vs. Templeton Growth Fund | Emerging Markets vs. Franklin Real Estate | Emerging Markets 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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