Correlation Between HUMANA and Grayscale Decentralized

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

By analyzing existing cross correlation between HUMANA INC and Grayscale Decentralized Finance, you can compare the effects of market volatilities on HUMANA and Grayscale Decentralized 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 Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Grayscale Decentralized.

Diversification Opportunities for HUMANA and Grayscale Decentralized

-0.05

Correlation Coefficient

HUMANA  Grayscale Decentralized

Good diversification

The 3 months correlation between HUMANA and Grayscale is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized 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 Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of HUMANA i.e., HUMANA and Grayscale Decentralized go up and down completely randomly.

Pair Corralation between HUMANA and Grayscale Decentralized

Assuming the 90 days trading horizon HUMANA is expected to generate 199.27 times less return on investment than Grayscale Decentralized. But when comparing it to its historical volatility, HUMANA INC is 166.87 times less risky than Grayscale Decentralized. It trades about 0.13 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,200  in Grayscale Decentralized Finance on October 6, 2024 and sell it today you would earn a total of  1,690  from holding Grayscale Decentralized Finance or generate 76.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

HUMANA INC  vs.  Grayscale Decentralized Financ

HUMANA INC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 4 (%) 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.

Grayscale Decentralized

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Decentralized Finance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Grayscale Decentralized reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HUMANA and Grayscale Decentralized

The main advantage of trading using opposite HUMANA and Grayscale Decentralized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Grayscale Decentralized 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 Grayscale Decentralized will offset losses from the drop in Grayscale Decentralized's long position.

The idea behind HUMANA INC and Grayscale Decentralized Finance 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.