Correlation Between Humana and Bitwise Crypto
Can any of the company-specific risk be diversified away by investing in both Humana and Bitwise Crypto 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 Bitwise Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and Bitwise Crypto Industry, you can compare the effects of market volatilities on Humana and Bitwise Crypto 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 Bitwise Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and Bitwise Crypto.
Diversification Opportunities for Humana and Bitwise Crypto
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humana and Bitwise is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry 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 Bitwise Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of Humana i.e., Humana and Bitwise Crypto go up and down completely randomly.
Pair Corralation between Humana and Bitwise Crypto
Considering the 90-day investment horizon Humana is expected to generate 2.1 times less return on investment than Bitwise Crypto. But when comparing it to its historical volatility, Humana Inc is 1.98 times less risky than Bitwise Crypto. It trades about 0.2 of its potential returns per unit of risk. Bitwise Crypto Industry is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,515 in Bitwise Crypto Industry on August 24, 2024 and sell it today you would earn a total of 455.00 from holding Bitwise Crypto Industry or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humana Inc vs. Bitwise Crypto Industry
Performance |
| Timeline |
| Humana Inc |
| Bitwise Crypto Industry |
Humana and Bitwise Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and Bitwise Crypto
The main advantage of trading using opposite Humana and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, Bitwise Crypto 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 Bitwise Crypto will offset losses from the drop in Bitwise Crypto's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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