Correlation Between Humana and GraniteShares 125x
Can any of the company-specific risk be diversified away by investing in both Humana and GraniteShares 125x 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 GraniteShares 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humana Inc and GraniteShares 125x Long, you can compare the effects of market volatilities on Humana and GraniteShares 125x 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 GraniteShares 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humana and GraniteShares 125x.
Diversification Opportunities for Humana and GraniteShares 125x
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humana and GraniteShares is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Humana Inc and GraniteShares 125x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 125x Long 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 GraniteShares 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 125x Long has no effect on the direction of Humana i.e., Humana and GraniteShares 125x go up and down completely randomly.
Pair Corralation between Humana and GraniteShares 125x
Considering the 90-day investment horizon Humana Inc is expected to under-perform the GraniteShares 125x. But the etf apears to be less risky and, when comparing its historical volatility, Humana Inc is 2.04 times less risky than GraniteShares 125x. The etf trades about -0.03 of its potential returns per unit of risk. The GraniteShares 125x Long is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 870.00 in GraniteShares 125x Long on October 25, 2024 and sell it today you would earn a total of 995.00 from holding GraniteShares 125x Long or generate 114.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Humana Inc vs. GraniteShares 125x Long
Performance |
| Timeline |
| Humana Inc |
| GraniteShares 125x Long |
Humana and GraniteShares 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humana and GraniteShares 125x
The main advantage of trading using opposite Humana and GraniteShares 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humana position performs unexpectedly, GraniteShares 125x 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 GraniteShares 125x will offset losses from the drop in GraniteShares 125x's long position.| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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