Correlation Between HUMANA and ProShares Metaverse
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By analyzing existing cross correlation between HUMANA INC and ProShares Metaverse ETF, you can compare the effects of market volatilities on HUMANA and ProShares Metaverse 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 ProShares Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and ProShares Metaverse.
Diversification Opportunities for HUMANA and ProShares Metaverse
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and ProShares is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and ProShares Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Metaverse ETF 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 ProShares Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Metaverse ETF has no effect on the direction of HUMANA i.e., HUMANA and ProShares Metaverse go up and down completely randomly.
Pair Corralation between HUMANA and ProShares Metaverse
Assuming the 90 days trading horizon HUMANA INC is expected to generate 52.88 times more return on investment than ProShares Metaverse. However, HUMANA is 52.88 times more volatile than ProShares Metaverse ETF. It trades about 0.07 of its potential returns per unit of risk. ProShares Metaverse ETF is currently generating about 0.07 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
HUMANA INC vs. ProShares Metaverse ETF
Performance |
| Timeline |
| HUMANA INC |
| ProShares Metaverse ETF |
HUMANA and ProShares Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and ProShares Metaverse
The main advantage of trading using opposite HUMANA and ProShares Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, ProShares Metaverse 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 ProShares Metaverse will offset losses from the drop in ProShares Metaverse's long position.The idea behind HUMANA INC and ProShares Metaverse ETF 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.| ProShares Metaverse vs. Roundhill Ball Metaverse | ProShares Metaverse vs. Deltagen | ProShares Metaverse vs. Fidelity Metaverse ETF |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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