Correlation Between HUMANA and Blackrock Science
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By analyzing existing cross correlation between HUMANA INC and Blackrock Science Technology, you can compare the effects of market volatilities on HUMANA and Blackrock Science 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 Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Science.
Diversification Opportunities for HUMANA and Blackrock Science
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Blackrock is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Science Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Science 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 Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Science has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Science go up and down completely randomly.
Pair Corralation between HUMANA and Blackrock Science
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Blackrock Science. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.73 times less risky than Blackrock Science. The bond trades about -0.16 of its potential returns per unit of risk. The Blackrock Science Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,196 in Blackrock Science Technology on August 29, 2024 and sell it today you would earn a total of 413.00 from holding Blackrock Science Technology or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
HUMANA INC vs. Blackrock Science Technology
Performance |
| Timeline |
| HUMANA INC |
| Blackrock Science |
HUMANA and Blackrock Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blackrock Science
The main advantage of trading using opposite HUMANA and Blackrock Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Science 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 Science will offset losses from the drop in Blackrock Science's long position.The idea behind HUMANA INC and Blackrock Science Technology 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.| Blackrock Science vs. Red Oak Technology | Blackrock Science vs. Live Oak Health | Blackrock Science vs. HUMANA INC | Blackrock Science vs. Aquagold International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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