Correlation Between GraniteShares 125x and Humana
Can any of the company-specific risk be diversified away by investing in both GraniteShares 125x and Humana 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 GraniteShares 125x and Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 125x Long and Humana Inc, you can compare the effects of market volatilities on GraniteShares 125x 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 GraniteShares 125x with a short position of Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 125x and Humana.
Diversification Opportunities for GraniteShares 125x and Humana
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and Humana is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 125x Long and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc and GraniteShares 125x 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 GraniteShares 125x Long 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 GraniteShares 125x i.e., GraniteShares 125x and Humana go up and down completely randomly.
Pair Corralation between GraniteShares 125x and Humana
Considering the 90-day investment horizon GraniteShares 125x Long is expected to generate 2.04 times more return on investment than Humana. However, GraniteShares 125x is 2.04 times more volatile than Humana Inc. It trades about 0.06 of its potential returns per unit of risk. Humana Inc is currently generating about -0.03 per unit of risk. 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 |
GraniteShares 125x Long vs. Humana Inc
Performance |
| Timeline |
| GraniteShares 125x Long |
| Humana Inc |
GraniteShares 125x and Humana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 125x and Humana
The main advantage of trading using opposite GraniteShares 125x and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 125x 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.| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
| Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |