Correlation Between HUMANA and Franklin Mutual
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By analyzing existing cross correlation between HUMANA INC and Franklin Mutual Shares, you can compare the effects of market volatilities on HUMANA and Franklin Mutual 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 Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Franklin Mutual.
Diversification Opportunities for HUMANA and Franklin Mutual
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Franklin is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Franklin Mutual Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Shares 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 Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Shares has no effect on the direction of HUMANA i.e., HUMANA and Franklin Mutual go up and down completely randomly.
Pair Corralation between HUMANA and Franklin Mutual
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Franklin Mutual. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.84 times less risky than Franklin Mutual. The bond trades about -0.08 of its potential returns per unit of risk. The Franklin Mutual Shares is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,718 in Franklin Mutual Shares on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Franklin Mutual Shares or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Franklin Mutual Shares
Performance |
| Timeline |
| HUMANA INC |
| Franklin Mutual Shares |
HUMANA and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Franklin Mutual
The main advantage of trading using opposite HUMANA and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
| Franklin Mutual vs. Saat E Market | Franklin Mutual vs. Saat Aggressive Strategy | Franklin Mutual vs. HUMANA INC | Franklin Mutual 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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