Correlation Between HUMANA and Blackrock Moderate
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By analyzing existing cross correlation between HUMANA INC and Blackrock Moderate Prepared, you can compare the effects of market volatilities on HUMANA and Blackrock Moderate 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 Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Moderate.
Diversification Opportunities for HUMANA and Blackrock Moderate
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Blackrock is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Moderate Prepared in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Moderate 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 Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Moderate has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Moderate go up and down completely randomly.
Pair Corralation between HUMANA and Blackrock Moderate
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Blackrock Moderate. In addition to that, HUMANA is 1.9 times more volatile than Blackrock Moderate Prepared. It trades about -0.07 of its total potential returns per unit of risk. Blackrock Moderate Prepared is currently generating about 0.06 per unit of volatility. If you would invest 1,297 in Blackrock Moderate Prepared on November 27, 2024 and sell it today you would earn a total of 18.00 from holding Blackrock Moderate Prepared or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
HUMANA INC vs. Blackrock Moderate Prepared
Performance |
| Timeline |
| HUMANA INC |
| Blackrock Moderate |
HUMANA and Blackrock Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blackrock Moderate
The main advantage of trading using opposite HUMANA and Blackrock Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Moderate 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 Moderate will offset losses from the drop in Blackrock Moderate's long position.| HUMANA vs. Amkor Technology | HUMANA vs. Primo Brands | HUMANA vs. The Coca Cola | HUMANA vs. Brandywine Realty Trust |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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