Correlation Between Siyata Mobile and HUMANA

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

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

Diversification Opportunities for Siyata Mobile and HUMANA

0.22

Correlation Coefficient

Siyata Mobile  HUMANA

Modest diversification

The 3 months correlation between Siyata and HUMANA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Siyata Mobile and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Siyata Mobile 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 Siyata Mobile 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 Siyata Mobile i.e., Siyata Mobile and HUMANA go up and down completely randomly.

Pair Corralation between Siyata Mobile and HUMANA

Given the investment horizon of 90 days Siyata Mobile is expected to generate 12.09 times more return on investment than HUMANA. However, Siyata Mobile is 12.09 times more volatile than HUMANA INC. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.1 per unit of risk. If you would invest  700.00  in Siyata Mobile on October 20, 2024 and sell it today you would lose (18.00) from holding Siyata Mobile or give up 2.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Siyata Mobile  vs.  HUMANA INC

Siyata Mobile

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siyata Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

HUMANA INC

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siyata Mobile and HUMANA

The main advantage of trading using opposite Siyata Mobile and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siyata Mobile 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 Siyata Mobile 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.