Correlation Between HUMANA and Blackrock Developed
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By analyzing existing cross correlation between HUMANA INC and Blackrock Developed Real, you can compare the effects of market volatilities on HUMANA and Blackrock Developed 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 Blackrock Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Developed.
Diversification Opportunities for HUMANA and Blackrock Developed
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Blackrock is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Developed Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Developed Real 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 Blackrock Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Developed Real has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Developed go up and down completely randomly.
Pair Corralation between HUMANA and Blackrock Developed
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.48 times more return on investment than Blackrock Developed. However, HUMANA is 1.48 times more volatile than Blackrock Developed Real. It trades about 0.27 of its potential returns per unit of risk. Blackrock Developed Real is currently generating about 0.05 per unit of risk. If you would invest 7,890 in HUMANA INC on October 21, 2024 and sell it today you would earn a total of 554.00 from holding HUMANA INC or generate 7.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
HUMANA INC vs. Blackrock Developed Real
Performance |
Timeline |
HUMANA INC |
Blackrock Developed Real |
HUMANA and Blackrock Developed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and Blackrock Developed
The main advantage of trading using opposite HUMANA and Blackrock Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Developed 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 Blackrock Developed will offset losses from the drop in Blackrock Developed's long position.HUMANA vs. Vantage Drilling International | HUMANA vs. Sable Offshore Corp | HUMANA vs. Noble plc | HUMANA vs. Drilling Tools International |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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