Correlation Between HUMANA and WisdomTree Emerging
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUMANA INC and WisdomTree Emerging Markets, you can compare the effects of market volatilities on HUMANA and WisdomTree 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 WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and WisdomTree Emerging.
Diversification Opportunities for HUMANA and WisdomTree Emerging
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and WisdomTree is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging 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 WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of HUMANA i.e., HUMANA and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between HUMANA and WisdomTree Emerging
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the WisdomTree Emerging. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.54 times less risky than WisdomTree Emerging. The bond trades about 0.0 of its potential returns per unit of risk. The WisdomTree Emerging Markets is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,057 in WisdomTree Emerging Markets on November 28, 2024 and sell it today you would earn a total of 6.00 from holding WisdomTree Emerging Markets or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
HUMANA INC vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| HUMANA INC |
| WisdomTree Emerging |
HUMANA and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and WisdomTree Emerging
The main advantage of trading using opposite HUMANA and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, WisdomTree 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 WisdomTree Emerging will offset losses from the drop in WisdomTree Emerging's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
| WisdomTree Emerging vs. Columbia EM Core | WisdomTree Emerging vs. WisdomTree BioRevolution | WisdomTree Emerging vs. iShares MSCI Emerging | WisdomTree Emerging vs. WisdomTree Emerging Markets |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |