Correlation Between HUMANA and Tcw Emerging
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By analyzing existing cross correlation between HUMANA INC and Tcw Emerging Markets, you can compare the effects of market volatilities on HUMANA and Tcw 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 Tcw Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Tcw Emerging.
Diversification Opportunities for HUMANA and Tcw Emerging
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Tcw is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Tcw Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcw Emerging Markets 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 Tcw Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcw Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Tcw Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Tcw Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to generate 200.22 times more return on investment than Tcw Emerging. However, HUMANA is 200.22 times more volatile than Tcw Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Tcw Emerging Markets is currently generating about 0.09 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Tcw Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Tcw Emerging Markets |
HUMANA and Tcw Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Tcw Emerging
The main advantage of trading using opposite HUMANA and Tcw Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Tcw 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 Tcw Emerging will offset losses from the drop in Tcw Emerging's long position.The idea behind HUMANA INC and Tcw Emerging 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.| Tcw Emerging vs. Fidelity New Markets | Tcw Emerging vs. HUMANA INC | Tcw Emerging vs. Aquagold International | Tcw Emerging vs. Barloworld Ltd ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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