Correlation Between MPhase Technologies and HUMANA
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By analyzing existing cross correlation between mPhase Technologies and HUMANA INC, you can compare the effects of market volatilities on MPhase Technologies and HUMANA 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 MPhase Technologies with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPhase Technologies and HUMANA.
Diversification Opportunities for MPhase Technologies and HUMANA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MPhase and HUMANA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding mPhase Technologies and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and MPhase Technologies 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 mPhase Technologies are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of MPhase Technologies i.e., MPhase Technologies and HUMANA go up and down completely randomly.
Pair Corralation between MPhase Technologies and HUMANA
Given the investment horizon of 90 days mPhase Technologies is expected to generate 70.06 times more return on investment than HUMANA. However, MPhase Technologies is 70.06 times more volatile than HUMANA INC. It trades about 0.13 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.17 per unit of risk. If you would invest 0.01 in mPhase Technologies on September 6, 2024 and sell it today you would earn a total of 0.00 from holding mPhase Technologies or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
mPhase Technologies vs. HUMANA INC
Performance |
Timeline |
mPhase Technologies |
HUMANA INC |
MPhase Technologies and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MPhase Technologies and HUMANA
The main advantage of trading using opposite MPhase Technologies and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPhase Technologies position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.MPhase Technologies vs. SunHydrogen | MPhase Technologies vs. Enerkon Solar International | MPhase Technologies vs. Ascent Solar Technologies, | MPhase Technologies vs. Solar Integrated Roofing |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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