Correlation Between Humana and ProShares Bitcoin
Can any of the company-specific risk be diversified away by investing in both Humana and ProShares Bitcoin 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 ProShares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and ProShares Bitcoin Strategy, you can compare the effects of market volatilities on Humana and ProShares Bitcoin 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 ProShares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and ProShares Bitcoin.
Diversification Opportunities for Humana and ProShares Bitcoin
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and ProShares is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and ProShares Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Bitcoin 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 ProShares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Bitcoin has no effect on the direction of Humana i.e., Humana and ProShares Bitcoin go up and down completely randomly.
Pair Corralation between Humana and ProShares Bitcoin
Considering the 90-day investment horizon Humana Inc is expected to under-perform the ProShares Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, Humana Inc is 1.61 times less risky than ProShares Bitcoin. The etf trades about -0.04 of its potential returns per unit of risk. The ProShares Bitcoin Strategy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 516.00 in ProShares Bitcoin Strategy on August 27, 2024 and sell it today you would earn a total of 2,153 from holding ProShares Bitcoin Strategy or generate 417.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. ProShares Bitcoin Strategy
Performance |
| Timeline |
| Humana Inc |
| ProShares Bitcoin |
Humana and ProShares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and ProShares Bitcoin
The main advantage of trading using opposite Humana and ProShares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, ProShares Bitcoin 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 ProShares Bitcoin will offset losses from the drop in ProShares Bitcoin's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Siren Nasdaq NexGen | ProShares Bitcoin vs. Grayscale Bitcoin Mini | ProShares Bitcoin vs. First Trust SkyBridge |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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