Correlation Between Franklin California and HUMANA
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By analyzing existing cross correlation between Franklin California High and HUMANA INC, you can compare the effects of market volatilities on Franklin California and HUMANA 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 Franklin California with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin California and HUMANA.
Diversification Opportunities for Franklin California and HUMANA
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and HUMANA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin California High and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Franklin California 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 Franklin California High are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Franklin California i.e., Franklin California and HUMANA go up and down completely randomly.
Pair Corralation between Franklin California and HUMANA
Assuming the 90 days horizon Franklin California is expected to generate 70.5 times less return on investment than HUMANA. But when comparing it to its historical volatility, Franklin California High is 6.79 times less risky than HUMANA. It trades about 0.0 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,922 in HUMANA INC on February 26, 2024 and sell it today you would earn a total of 36.00 from holding HUMANA INC or generate 0.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.92% |
Values | Daily Returns |
Franklin California High vs. HUMANA INC
Performance |
Timeline |
Franklin California High |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HUMANA INC |
Franklin California and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin California and HUMANA
The main advantage of trading using opposite Franklin California and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin California position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.Franklin California vs. Lord Abbett Convertible | Franklin California vs. Virtus Convertible | Franklin California vs. Gabelli Convertible And | Franklin California vs. Fidelity Sai Convertible |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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