Correlation Between NewGenIvf Group and Humana

Can any of the company-specific risk be diversified away by investing in both NewGenIvf Group 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 NewGenIvf Group and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NewGenIvf Group Limited and Humana Inc, you can compare the effects of market volatilities on NewGenIvf Group 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 NewGenIvf Group with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewGenIvf Group and Humana.

Diversification Opportunities for NewGenIvf Group and Humana

-0.35

Correlation Coefficient

NewGenIvf Group  Humana

Very good diversification

The 3 months correlation between NewGenIvf and Humana is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding NewGenIvf Group Limited and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and NewGenIvf Group 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 NewGenIvf Group Limited 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 NewGenIvf Group i.e., NewGenIvf Group and Humana go up and down completely randomly.

Pair Corralation between NewGenIvf Group and Humana

Given the investment horizon of 90 days NewGenIvf Group Limited is expected to generate 7.38 times more return on investment than Humana. However, NewGenIvf Group is 7.38 times more volatile than Humana Inc. It trades about 0.03 of its potential returns per unit of risk. Humana Inc is currently generating about -0.06 per unit of risk. If you would invest  70.00  in NewGenIvf Group Limited on September 12, 2024 and sell it today you would lose (33.90) from holding NewGenIvf Group Limited or give up 48.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NewGenIvf Group Limited  vs.  Humana Inc

NewGenIvf Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, NewGenIvf Group reported solid returns over the last few months and may actually be approaching a breakup point.

Humana Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Humana Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with NewGenIvf Group and Humana

The main advantage of trading using opposite NewGenIvf Group and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewGenIvf Group 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 NewGenIvf Group Limited 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .