Correlation Between HUMANA and Templeton Developing
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By analyzing existing cross correlation between HUMANA INC and Templeton Developing Markets, you can compare the effects of market volatilities on HUMANA and Templeton Developing 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 Templeton Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Templeton Developing.
Diversification Opportunities for HUMANA and Templeton Developing
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Templeton is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Templeton Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Developing 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 Templeton Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Developing has no effect on the direction of HUMANA i.e., HUMANA and Templeton Developing go up and down completely randomly.
Pair Corralation between HUMANA and Templeton Developing
Assuming the 90 days trading horizon HUMANA INC is expected to generate 2.54 times more return on investment than Templeton Developing. However, HUMANA is 2.54 times more volatile than Templeton Developing Markets. It trades about 0.08 of its potential returns per unit of risk. Templeton Developing Markets is currently generating about -0.12 per unit of risk. If you would invest 7,872 in HUMANA INC on March 4, 2024 and sell it today you would earn a total of 224.00 from holding HUMANA INC or generate 2.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
HUMANA INC vs. Templeton Developing Markets
Performance |
Timeline |
HUMANA INC |
Templeton Developing |
HUMANA and Templeton Developing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Templeton Developing
The main advantage of trading using opposite HUMANA and Templeton Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Templeton Developing 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 Templeton Developing will offset losses from the drop in Templeton Developing's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. KNOT Offshore Partners | HUMANA vs. Blue Sphere Corp |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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