Correlation Between Global Techs and Humbl

Can any of the company-specific risk be diversified away by investing in both Global Techs and Humbl at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Global Techs and Humbl into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Techs and Humbl Inc, you can compare the effects of market volatilities on Global Techs and Humbl 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 Global Techs with a short position of Humbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Techs and Humbl.

Diversification Opportunities for Global Techs and Humbl

-0.12

Correlation Coefficient

Global Techs  Humbl

Good diversification

The 3 months correlation between Global and Humbl is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Global Techs and Humbl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humbl Inc and Global Techs 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 Global Techs are associated (or correlated) with Humbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humbl Inc has no effect on the direction of Global Techs i.e., Global Techs and Humbl go up and down completely randomly.

Pair Corralation between Global Techs and Humbl

If you would invest  0.03  in Humbl Inc on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Humbl Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Global Techs  vs.  Humbl Inc

Global Techs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Techs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Global Techs is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Humbl Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Humbl Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, Humbl disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global Techs and Humbl

The main advantage of trading using opposite Global Techs and Humbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Techs position performs unexpectedly, Humbl 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 Humbl will offset losses from the drop in Humbl's long position.

The idea behind Global Techs and Humbl Inc 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.