Correlation Between HUMANA and Emerging Markets
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and Emerging Markets Fund, you can compare the effects of market volatilities on HUMANA and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Emerging Markets.
Diversification Opportunities for HUMANA and Emerging Markets
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Emerging is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Emerging Markets go up and down completely randomly.
Pair Corralation between HUMANA and Emerging Markets
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Emerging Markets. In addition to that, HUMANA is 1.47 times more volatile than Emerging Markets Fund. It trades about -0.21 of its total potential returns per unit of risk. Emerging Markets Fund is currently generating about -0.15 per unit of volatility. If you would invest 2,135 in Emerging Markets Fund on September 1, 2024 and sell it today you would lose (55.00) from holding Emerging Markets Fund or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Emerging Markets Fund
Performance |
| Timeline |
| HUMANA INC |
| Emerging Markets |
HUMANA and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Emerging Markets
The main advantage of trading using opposite HUMANA and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Emerging Markets vs. Capital Growth Fund | Emerging Markets vs. High Income Fund | Emerging Markets vs. International Fund International | Emerging Markets vs. Growth Income Fund |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |