Correlation Between HUMANA and Thornburg International
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By analyzing existing cross correlation between HUMANA INC and Thornburg International Growth, you can compare the effects of market volatilities on HUMANA and Thornburg International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Thornburg International.
Diversification Opportunities for HUMANA and Thornburg International
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Thornburg is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Thornburg International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of HUMANA i.e., HUMANA and Thornburg International go up and down completely randomly.
Pair Corralation between HUMANA and Thornburg International
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.4 times more return on investment than Thornburg International. However, HUMANA INC is 2.47 times less risky than Thornburg International. It trades about -0.05 of its potential returns per unit of risk. Thornburg International Growth is currently generating about -0.23 per unit of risk. If you would invest 8,090 in HUMANA INC on September 3, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
HUMANA INC vs. Thornburg International Growth
Performance |
| Timeline |
| HUMANA INC |
| Thornburg International |
HUMANA and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Thornburg International
The main advantage of trading using opposite HUMANA and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Thornburg International 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 International will offset losses from the drop in Thornburg International's long position.| HUMANA vs. JetBlue Airways Corp | HUMANA vs. Air Transport Services | HUMANA vs. Sun Life Financial | HUMANA vs. Bank of America |
| Thornburg International vs. Fidelity International Growth | Thornburg International vs. Fidelity Small Cap | Thornburg International vs. Fidelity Advisor Mid | Thornburg International vs. HUMANA INC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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