Correlation Between HUMANA and Wasatch Emerging
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By analyzing existing cross correlation between HUMANA INC and Wasatch Emerging Markets, you can compare the effects of market volatilities on HUMANA and Wasatch 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 Wasatch Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Wasatch Emerging.
Diversification Opportunities for HUMANA and Wasatch Emerging
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Wasatch is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Wasatch Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch 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 Wasatch Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Emerging Markets has no effect on the direction of HUMANA i.e., HUMANA and Wasatch Emerging go up and down completely randomly.
Pair Corralation between HUMANA and Wasatch Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Wasatch Emerging. In addition to that, HUMANA is 1.4 times more volatile than Wasatch Emerging Markets. It trades about -0.22 of its total potential returns per unit of risk. Wasatch Emerging Markets is currently generating about -0.21 per unit of volatility. If you would invest 315.00 in Wasatch Emerging Markets on August 30, 2024 and sell it today you would lose (12.00) from holding Wasatch Emerging Markets or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HUMANA INC vs. Wasatch Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| Wasatch Emerging Markets |
HUMANA and Wasatch Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Wasatch Emerging
The main advantage of trading using opposite HUMANA and Wasatch Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Wasatch 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 Wasatch Emerging will offset losses from the drop in Wasatch Emerging's long position.The idea behind HUMANA INC and Wasatch 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.| Wasatch Emerging vs. Vanguard Emerging Markets | Wasatch Emerging vs. Vanguard Emerging Markets | Wasatch Emerging vs. HUMANA INC | Wasatch Emerging 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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