Correlation Between Blackhawk Growth and HUMANA

Can any of the company-specific risk be diversified away by investing in both Blackhawk Growth and HUMANA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blackhawk Growth and HUMANA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackhawk Growth Corp and HUMANA INC, you can compare the effects of market volatilities on Blackhawk Growth 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 Blackhawk Growth with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Growth and HUMANA.

Diversification Opportunities for Blackhawk Growth and HUMANA

0.0

Correlation Coefficient

Blackhawk Growth  HUMANA

Pay attention - limited upside

The 3 months correlation between Blackhawk and HUMANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Growth Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Blackhawk Growth 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 Blackhawk Growth Corp 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 Blackhawk Growth i.e., Blackhawk Growth and HUMANA go up and down completely randomly.

Pair Corralation between Blackhawk Growth and HUMANA

If you would invest  0.06  in Blackhawk Growth Corp on November 29, 2024 and sell it today you would earn a total of  0.00  from holding Blackhawk Growth Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Blackhawk Growth Corp  vs.  HUMANA INC

Blackhawk Growth Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackhawk Growth Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Blackhawk Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

HUMANA INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackhawk Growth and HUMANA

The main advantage of trading using opposite Blackhawk Growth and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackhawk Growth 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.

The idea behind Blackhawk Growth Corp and HUMANA INC 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.