Correlation Between HUMANA and General Cannabis
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By analyzing existing cross correlation between HUMANA INC and General Cannabis Corp, you can compare the effects of market volatilities on HUMANA and General Cannabis 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 General Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and General Cannabis.
Diversification Opportunities for HUMANA and General Cannabis
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and General is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and General Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Cannabis 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 General Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Cannabis Corp has no effect on the direction of HUMANA i.e., HUMANA and General Cannabis go up and down completely randomly.
Pair Corralation between HUMANA and General Cannabis
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.07 times more return on investment than General Cannabis. However, HUMANA INC is 14.77 times less risky than General Cannabis. It trades about -0.05 of its potential returns per unit of risk. General Cannabis Corp is currently generating about -0.23 per unit of risk. If you would invest 8,090 in HUMANA INC on September 5, 2024 and sell it today you would lose (55.00) from holding HUMANA INC or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
HUMANA INC vs. General Cannabis Corp
Performance |
| Timeline |
| HUMANA INC |
| General Cannabis Corp |
HUMANA and General Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and General Cannabis
The main advantage of trading using opposite HUMANA and General Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, General Cannabis 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 General Cannabis will offset losses from the drop in General Cannabis' long position.The idea behind HUMANA INC and General Cannabis 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.| General Cannabis vs. TOMI Environmental Solutions | General Cannabis vs. SCOR PK | General Cannabis vs. HUMANA INC | General Cannabis 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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