Correlation Between HUMANA and Blackrock Small
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By analyzing existing cross correlation between HUMANA INC and Blackrock Small Cap, you can compare the effects of market volatilities on HUMANA and Blackrock Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Small.
Diversification Opportunities for HUMANA and Blackrock Small
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUMANA and Blackrock is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Small Cap has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Small go up and down completely randomly.
Pair Corralation between HUMANA and Blackrock Small
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.79 times more return on investment than Blackrock Small. However, HUMANA INC is 1.27 times less risky than Blackrock Small. It trades about -0.09 of its potential returns per unit of risk. Blackrock Small Cap is currently generating about -0.22 per unit of risk. If you would invest 8,052 in HUMANA INC on November 28, 2024 and sell it today you would lose (153.00) from holding HUMANA INC or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Blackrock Small Cap
Performance |
| Timeline |
| HUMANA INC |
| Blackrock Small Cap |
HUMANA and Blackrock Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blackrock Small
The main advantage of trading using opposite HUMANA and Blackrock Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Small 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 Small will offset losses from the drop in Blackrock Small's long position.| HUMANA vs. Iridium Communications | HUMANA vs. Barrick Gold Corp | HUMANA vs. Sun Peak Metals | HUMANA vs. Pinterest |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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