Correlation Between HUMANA and Templeton World
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By analyzing existing cross correlation between HUMANA INC and Templeton World Fund, you can compare the effects of market volatilities on HUMANA and Templeton World 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 World. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Templeton World.
Diversification Opportunities for HUMANA and Templeton World
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Templeton is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Templeton World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton World 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 World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton World has no effect on the direction of HUMANA i.e., HUMANA and Templeton World go up and down completely randomly.
Pair Corralation between HUMANA and Templeton World
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Templeton World. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.29 times less risky than Templeton World. The bond trades about -0.04 of its potential returns per unit of risk. The Templeton World Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,687 in Templeton World Fund on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Templeton World Fund or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Templeton World Fund
Performance |
| Timeline |
| HUMANA INC |
| Templeton World |
HUMANA and Templeton World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Templeton World
The main advantage of trading using opposite HUMANA and Templeton World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Templeton World 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 World will offset losses from the drop in Templeton World's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Templeton World vs. Franklin Mutual Beacon | Templeton World vs. Templeton Developing Markets | Templeton World vs. Franklin Mutual Global | Templeton World 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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