Correlation Between HUMANA and Cypherpunk Holdings
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By analyzing existing cross correlation between HUMANA INC and Cypherpunk Holdings, you can compare the effects of market volatilities on HUMANA and Cypherpunk Holdings 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 Cypherpunk Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Cypherpunk Holdings.
Diversification Opportunities for HUMANA and Cypherpunk Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Cypherpunk is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Cypherpunk Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cypherpunk Holdings 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 Cypherpunk Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cypherpunk Holdings has no effect on the direction of HUMANA i.e., HUMANA and Cypherpunk Holdings go up and down completely randomly.
Pair Corralation between HUMANA and Cypherpunk Holdings
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Cypherpunk Holdings. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 24.62 times less risky than Cypherpunk Holdings. The bond trades about -0.02 of its potential returns per unit of risk. The Cypherpunk Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Cypherpunk Holdings on September 2, 2024 and sell it today you would earn a total of 111.50 from holding Cypherpunk Holdings or generate 1486.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Cypherpunk Holdings
Performance |
| Timeline |
| HUMANA INC |
| Cypherpunk Holdings |
HUMANA and Cypherpunk Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Cypherpunk Holdings
The main advantage of trading using opposite HUMANA and Cypherpunk Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Cypherpunk Holdings 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 Cypherpunk Holdings will offset losses from the drop in Cypherpunk Holdings' long position.The idea behind HUMANA INC and Cypherpunk Holdings 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.| Cypherpunk Holdings vs. Morgan Stanley | Cypherpunk Holdings vs. Goldman Sachs Group | Cypherpunk Holdings vs. HUMANA INC | Cypherpunk Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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