Correlation Between HUMANA and CryptoStar Corp
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By analyzing existing cross correlation between HUMANA INC and CryptoStar Corp, you can compare the effects of market volatilities on HUMANA and CryptoStar Corp 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 CryptoStar Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and CryptoStar Corp.
Diversification Opportunities for HUMANA and CryptoStar Corp
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and CryptoStar is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and CryptoStar Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryptoStar 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 CryptoStar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryptoStar Corp has no effect on the direction of HUMANA i.e., HUMANA and CryptoStar Corp go up and down completely randomly.
Pair Corralation between HUMANA and CryptoStar Corp
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the CryptoStar Corp. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 8.26 times less risky than CryptoStar Corp. The bond trades about -0.18 of its potential returns per unit of risk. The CryptoStar Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.16 in CryptoStar Corp on September 2, 2024 and sell it today you would earn a total of 0.13 from holding CryptoStar Corp or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. CryptoStar Corp
Performance |
| Timeline |
| HUMANA INC |
| CryptoStar Corp |
HUMANA and CryptoStar Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and CryptoStar Corp
The main advantage of trading using opposite HUMANA and CryptoStar Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, CryptoStar Corp 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 CryptoStar Corp will offset losses from the drop in CryptoStar Corp's long position.The idea behind HUMANA INC and CryptoStar 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.| CryptoStar Corp vs. Morgan Stanley | CryptoStar Corp vs. Goldman Sachs Group | CryptoStar Corp vs. HUMANA INC | CryptoStar Corp vs. SCOR PK |
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 CEOs Directory module to screen CEOs from public companies around the world.
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