Correlation Between HUMANA and 3Dx Industries
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By analyzing existing cross correlation between HUMANA INC and 3Dx Industries, you can compare the effects of market volatilities on HUMANA and 3Dx Industries 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 3Dx Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and 3Dx Industries.
Diversification Opportunities for HUMANA and 3Dx Industries
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUMANA and 3Dx is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and 3Dx Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3Dx Industries 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 3Dx Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3Dx Industries has no effect on the direction of HUMANA i.e., HUMANA and 3Dx Industries go up and down completely randomly.
Pair Corralation between HUMANA and 3Dx Industries
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the 3Dx Industries. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 39.3 times less risky than 3Dx Industries. The bond trades about -0.05 of its potential returns per unit of risk. The 3Dx Industries is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2.00 in 3Dx Industries on September 5, 2024 and sell it today you would lose (0.83) from holding 3Dx Industries or give up 41.5% 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. 3Dx Industries
Performance |
| Timeline |
| HUMANA INC |
| 3Dx Industries |
HUMANA and 3Dx Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and 3Dx Industries
The main advantage of trading using opposite HUMANA and 3Dx Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, 3Dx Industries 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 3Dx Industries will offset losses from the drop in 3Dx Industries' long position.The idea behind HUMANA INC and 3Dx Industries 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.| 3Dx Industries vs. TOMI Environmental Solutions | 3Dx Industries vs. SCOR PK | 3Dx Industries vs. HUMANA INC | 3Dx Industries 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 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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