Correlation Between HUMANA and Blackrock Muniyield
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By analyzing existing cross correlation between HUMANA INC and Blackrock Muniyield Quality, you can compare the effects of market volatilities on HUMANA and Blackrock Muniyield 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 Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Blackrock Muniyield.
Diversification Opportunities for HUMANA and Blackrock Muniyield
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HUMANA and Blackrock is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Blackrock Muniyield Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of HUMANA i.e., HUMANA and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between HUMANA and Blackrock Muniyield
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Blackrock Muniyield. In addition to that, HUMANA is 1.15 times more volatile than Blackrock Muniyield Quality. It trades about -0.02 of its total potential returns per unit of risk. Blackrock Muniyield Quality is currently generating about 0.08 per unit of volatility. If you would invest 1,044 in Blackrock Muniyield Quality on September 2, 2024 and sell it today you would earn a total of 119.00 from holding Blackrock Muniyield Quality or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
HUMANA INC vs. Blackrock Muniyield Quality
Performance |
| Timeline |
| HUMANA INC |
| Blackrock Muniyield |
HUMANA and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Blackrock Muniyield
The main advantage of trading using opposite HUMANA and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.The idea behind HUMANA INC and Blackrock Muniyield Quality 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.| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Eaton Vance Municipal | Blackrock Muniyield vs. DTF Tax Free | Blackrock Muniyield 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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