Correlation Between HUMANA and Blackhawk Growth
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By analyzing existing cross correlation between HUMANA INC and Blackhawk Growth Corp, you can compare the effects of market volatilities on HUMANA and Blackhawk Growth 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 Blackhawk Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackhawk Growth.
Diversification Opportunities for HUMANA and Blackhawk Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Blackhawk is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackhawk Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackhawk Growth Corp 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 Blackhawk Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackhawk Growth Corp has no effect on the direction of HUMANA i.e., HUMANA and Blackhawk Growth go up and down completely randomly.
Pair Corralation between HUMANA and Blackhawk Growth
Assuming the 90 days trading horizon HUMANA INC is expected to generate 1.77 times more return on investment than Blackhawk Growth. However, HUMANA is 1.77 times more volatile than Blackhawk Growth Corp. It trades about 0.07 of its potential returns per unit of risk. Blackhawk Growth Corp is currently generating about 0.03 per unit of risk. If you would invest 8,012 in HUMANA INC on September 2, 2024 and sell it today you would lose (317.00) from holding HUMANA INC or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.76% |
| Values | Daily Returns |
HUMANA INC vs. Blackhawk Growth Corp
Performance |
| Timeline |
| HUMANA INC |
| Blackhawk Growth Corp |
HUMANA and Blackhawk Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blackhawk Growth
The main advantage of trading using opposite HUMANA and Blackhawk Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackhawk Growth 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 Blackhawk Growth will offset losses from the drop in Blackhawk Growth's long position.The idea behind HUMANA INC and Blackhawk Growth Corp 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.| Blackhawk Growth vs. HUMANA INC | Blackhawk Growth vs. SCOR PK | Blackhawk Growth vs. Aquagold International | Blackhawk Growth vs. Thrivent High Yield |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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