Correlation Between Chia and Humbl

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

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

Diversification Opportunities for Chia and Humbl

0.47

Correlation Coefficient

Chia  Humbl

Very weak diversification

The 3 months correlation between Chia and Humbl is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Humbl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humbl Inc and Chia 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 Chia are associated (or correlated) with Humbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humbl Inc has no effect on the direction of Chia i.e., Chia and Humbl go up and down completely randomly.

Pair Corralation between Chia and Humbl

Assuming the 90 days trading horizon Chia is expected to generate 0.62 times more return on investment than Humbl. However, Chia is 1.61 times less risky than Humbl. It trades about -0.08 of its potential returns per unit of risk. Humbl Inc is currently generating about -0.07 per unit of risk. If you would invest  2,168  in Chia on December 19, 2024 and sell it today you would lose (796.00) from holding Chia or give up 36.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.65%
Values	Daily Returns

Chia  vs.  Humbl Inc

Chia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Chia shareholders.

Humbl Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humbl Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Chia and Humbl

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

The idea behind Chia and Humbl 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.