Correlation Between HUMANA and Blue Line
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By analyzing existing cross correlation between HUMANA INC and Blue Line Protection, you can compare the effects of market volatilities on HUMANA and Blue Line 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 Blue Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blue Line.
Diversification Opportunities for HUMANA and Blue Line
Very weak diversification
The 3 months correlation between HUMANA and Blue is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection 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 Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of HUMANA i.e., HUMANA and Blue Line go up and down completely randomly.
Pair Corralation between HUMANA and Blue Line
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.07 times more return on investment than Blue Line. However, HUMANA INC is 14.79 times less risky than Blue Line. It trades about -0.07 of its potential returns per unit of risk. Blue Line Protection is currently generating about -0.09 per unit of risk. If you would invest 8,186 in HUMANA INC on September 5, 2024 and sell it today you would lose (151.00) from holding HUMANA INC or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.86% |
| Values | Daily Returns |
HUMANA INC vs. Blue Line Protection
Performance |
| Timeline |
| HUMANA INC |
| Blue Line Protection |
HUMANA and Blue Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blue Line
The main advantage of trading using opposite HUMANA and Blue Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blue Line 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 Blue Line will offset losses from the drop in Blue Line's long position.The idea behind HUMANA INC and Blue Line Protection 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.| Blue Line vs. TOMI Environmental Solutions | Blue Line vs. SCOR PK | Blue Line vs. HUMANA INC | Blue Line 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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