Correlation Between BQE Water and HUMANA
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By analyzing existing cross correlation between BQE Water and HUMANA INC, you can compare the effects of market volatilities on BQE Water 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 BQE Water with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BQE Water and HUMANA.
Diversification Opportunities for BQE Water and HUMANA
Weak diversification
The 3 months correlation between BQE and HUMANA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BQE Water and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and BQE Water 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 BQE Water 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 BQE Water i.e., BQE Water and HUMANA go up and down completely randomly.
Pair Corralation between BQE Water and HUMANA
Assuming the 90 days horizon BQE Water is expected to generate 0.05 times more return on investment than HUMANA. However, BQE Water is 20.11 times less risky than HUMANA. It trades about -0.21 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 3,810 in BQE Water on September 13, 2024 and sell it today you would lose (10.00) from holding BQE Water or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BQE Water vs. HUMANA INC
Performance |
| Timeline |
| BQE Water |
| HUMANA INC |
BQE Water and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BQE Water and HUMANA
The main advantage of trading using opposite BQE Water and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BQE Water 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.| BQE Water vs. HUMANA INC | BQE Water vs. Barloworld Ltd ADR | BQE Water vs. Morningstar Unconstrained Allocation | BQE Water vs. Thrivent High Yield |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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