Correlation Between HUMANA and Transamerica Emerging
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By analyzing existing cross correlation between HUMANA INC and Transamerica Emerging Markets, you can compare the effects of market volatilities on HUMANA and Transamerica Emerging 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 Transamerica Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Transamerica Emerging.
Diversification Opportunities for HUMANA and Transamerica Emerging
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Transamerica is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Transamerica Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Emerging 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 Transamerica Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Emerging has no effect on the direction of HUMANA i.e., HUMANA and Transamerica Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Transamerica Emerging
Assuming the 90 days trading horizon HUMANA is expected to generate 4.47 times less return on investment than Transamerica Emerging. But when comparing it to its historical volatility, HUMANA INC is 1.42 times less risky than Transamerica Emerging. It trades about 0.02 of its potential returns per unit of risk. Transamerica Emerging Markets is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Transamerica Emerging Markets on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Transamerica Emerging Markets or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
HUMANA INC vs. Transamerica Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Transamerica Emerging |
HUMANA and Transamerica Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Transamerica Emerging
The main advantage of trading using opposite HUMANA and Transamerica Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Transamerica Emerging 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 Transamerica Emerging will offset losses from the drop in Transamerica Emerging's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Transamerica Emerging vs. Transamerica Capital Growth | Transamerica Emerging vs. Transamerica Growth T | Transamerica Emerging vs. Transamerica Large Cap | Transamerica Emerging vs. Transamerica Large Cap |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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