Correlation Between HUMANA and Athena Bitcoin

Can any of the company-specific risk be diversified away by investing in both HUMANA and Athena Bitcoin 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 HUMANA and Athena Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HUMANA INC and Athena Bitcoin Global, you can compare the effects of market volatilities on HUMANA and Athena Bitcoin 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 Athena Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Athena Bitcoin.

Diversification Opportunities for HUMANA and Athena Bitcoin

0.0

Correlation Coefficient

HUMANA  Athena Bitcoin

Pay attention - limited upside

The 3 months correlation between HUMANA and Athena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Athena Bitcoin Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Bitcoin Global 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 Athena Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Bitcoin Global has no effect on the direction of HUMANA i.e., HUMANA and Athena Bitcoin go up and down completely randomly.

Pair Corralation between HUMANA and Athena Bitcoin

Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Athena Bitcoin. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 24.51 times less risky than Athena Bitcoin. The bond trades about -0.18 of its potential returns per unit of risk. The Athena Bitcoin Global is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4.30  in Athena Bitcoin Global on September 21, 2024 and sell it today you would earn a total of  6.70  from holding Athena Bitcoin Global or generate 155.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

HUMANA INC  vs.  Athena Bitcoin Global

HUMANA INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.

Athena Bitcoin Global

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Athena Bitcoin Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting forward indicators, Athena Bitcoin unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HUMANA and Athena Bitcoin

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

The idea behind HUMANA INC and Athena Bitcoin Global 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.