Correlation Between HUMANA and IMining Blockchain

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

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

Diversification Opportunities for HUMANA and IMining Blockchain

0.0

Correlation Coefficient

HUMANA  IMining Blockchain

Pay attention - limited upside

The 3 months correlation between HUMANA and IMining is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and iMining Blockchain and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iMining Blockchain and 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 IMining Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iMining Blockchain and has no effect on the direction of HUMANA i.e., HUMANA and IMining Blockchain go up and down completely randomly.

Pair Corralation between HUMANA and IMining Blockchain

Assuming the 90 days trading horizon HUMANA INC is expected to generate 10.25 times more return on investment than IMining Blockchain. However, HUMANA is 10.25 times more volatile than iMining Blockchain and. It trades about 0.07 of its potential returns per unit of risk. iMining Blockchain and is currently generating about -0.04 per unit of risk. If you would invest  7,840  in HUMANA INC on September 13, 2024 and sell it today you would lose (145.00) from holding HUMANA INC or give up 1.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

HUMANA INC  vs.  iMining Blockchain and

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. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.

iMining Blockchain and

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iMining Blockchain and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, IMining Blockchain is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HUMANA and IMining Blockchain

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

The idea behind HUMANA INC and iMining Blockchain and 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.