Correlation Between HUMANA and Templeton Developing
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Templeton Developing Markets, you can compare the effects of market volatilities on HUMANA and Templeton Developing 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 Templeton Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Templeton Developing.
Diversification Opportunities for HUMANA and Templeton Developing
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Templeton is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Templeton Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Developing 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 Templeton Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Developing has no effect on the direction of HUMANA i.e., HUMANA and Templeton Developing go up and down completely randomly.
Pair Corralation between HUMANA and Templeton Developing
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Templeton Developing. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.42 times less risky than Templeton Developing. The bond trades about -0.15 of its potential returns per unit of risk. The Templeton Developing Markets is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,903 in Templeton Developing Markets on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Templeton Developing Markets or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
HUMANA INC vs. Templeton Developing Markets
Performance |
| Timeline |
| HUMANA INC |
| Templeton Developing |
HUMANA and Templeton Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Templeton Developing
The main advantage of trading using opposite HUMANA and Templeton Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Templeton Developing 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 Templeton Developing will offset losses from the drop in Templeton Developing's long position.The idea behind HUMANA INC and Templeton Developing Markets 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.| Templeton Developing vs. Franklin Mutual Beacon | Templeton Developing vs. Franklin Mutual Global | Templeton Developing vs. Franklin Mutual Global | Templeton Developing vs. Franklin Mutual Global |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |