Correlation Between HUMANA and Blackrock Global

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Can any of the company-specific risk be diversified away by investing in both HUMANA and Blackrock Global 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 Blackrock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUMANA INC and Blackrock Global Longshort, you can compare the effects of market volatilities on HUMANA and Blackrock Global 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 Blackrock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Global.

Diversification Opportunities for HUMANA and Blackrock Global

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between HUMANA and Blackrock is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Global Lon 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 Blackrock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Global Lon has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Global go up and down completely randomly.

Pair Corralation between HUMANA and Blackrock Global

Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Blackrock Global. In addition to that, HUMANA is 1.58 times more volatile than Blackrock Global Longshort. It trades about -0.21 of its total potential returns per unit of risk. Blackrock Global Longshort is currently generating about 0.04 per unit of volatility. If you would invest  1,407  in Blackrock Global Longshort on September 1, 2024 and sell it today you would earn a total of  8.00  from holding Blackrock Global Longshort or generate 0.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy90.91%
ValuesDaily Returns

HUMANA INC  vs.  Blackrock Global Longshort

 Performance 
       Timeline  
HUMANA INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.
Blackrock Global Lon 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Global Longshort are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Blackrock Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HUMANA and Blackrock Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HUMANA and Blackrock Global

The main advantage of trading using opposite HUMANA and Blackrock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Global 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 Blackrock Global will offset losses from the drop in Blackrock Global's long position.
The idea behind HUMANA INC and Blackrock Global Longshort pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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