Correlation Between HUMANA and Templeton Foreign
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By analyzing existing cross correlation between HUMANA INC and Templeton Foreign Fund, you can compare the effects of market volatilities on HUMANA and Templeton Foreign 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 Foreign. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Templeton Foreign.
Diversification Opportunities for HUMANA and Templeton Foreign
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and Templeton is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Templeton Foreign Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Foreign 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 Foreign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Foreign has no effect on the direction of HUMANA i.e., HUMANA and Templeton Foreign go up and down completely randomly.
Pair Corralation between HUMANA and Templeton Foreign
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Templeton Foreign. In addition to that, HUMANA is 1.05 times more volatile than Templeton Foreign Fund. It trades about -0.21 of its total potential returns per unit of risk. Templeton Foreign Fund is currently generating about -0.09 per unit of volatility. If you would invest 830.00 in Templeton Foreign Fund on August 31, 2024 and sell it today you would lose (18.00) from holding Templeton Foreign Fund or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Templeton Foreign Fund
Performance |
| Timeline |
| HUMANA INC |
| Templeton Foreign |
HUMANA and Templeton Foreign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Templeton Foreign
The main advantage of trading using opposite HUMANA and Templeton Foreign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Templeton Foreign 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 Foreign will offset losses from the drop in Templeton Foreign's long position.| HUMANA vs. Air Products and | HUMANA vs. GE Vernova LLC | HUMANA vs. Aris Water Solutions | HUMANA vs. Pure Cycle |
| Templeton Foreign vs. Loomis Sayles Growth | Templeton Foreign vs. Nuance Mid Cap | Templeton Foreign vs. HUMANA INC | Templeton Foreign vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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