Correlation Between HUMANA and Thornburg Developing
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By analyzing existing cross correlation between HUMANA INC and Thornburg Developing World, you can compare the effects of market volatilities on HUMANA and Thornburg Developing 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 Thornburg Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thornburg Developing.
Diversification Opportunities for HUMANA and Thornburg Developing
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Thornburg is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thornburg Developing World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Developing 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 Thornburg Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Developing has no effect on the direction of HUMANA i.e., HUMANA and Thornburg Developing go up and down completely randomly.
Pair Corralation between HUMANA and Thornburg Developing
Assuming the 90 days trading horizon HUMANA INC is expected to generate 98.26 times more return on investment than Thornburg Developing. However, HUMANA is 98.26 times more volatile than Thornburg Developing World. It trades about 0.07 of its potential returns per unit of risk. Thornburg Developing World is currently generating about 0.03 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. Thornburg Developing World
Performance |
| Timeline |
| HUMANA INC |
| Thornburg Developing |
HUMANA and Thornburg Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thornburg Developing
The main advantage of trading using opposite HUMANA and Thornburg Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thornburg Developing 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 Thornburg Developing will offset losses from the drop in Thornburg Developing's long position.The idea behind HUMANA INC and Thornburg Developing World 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.| Thornburg Developing vs. Vanguard Emerging Markets | Thornburg Developing vs. Vanguard Emerging Markets | Thornburg Developing vs. HUMANA INC | Thornburg Developing 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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