Correlation Between Blackrock Muniyield and HUMANA

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

By analyzing existing cross correlation between Blackrock Muniyield New and HUMANA INC, you can compare the effects of market volatilities on Blackrock Muniyield 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 Blackrock Muniyield with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and HUMANA.

Diversification Opportunities for Blackrock Muniyield and HUMANA

0.0

Correlation Coefficient

Blackrock Muniyield  HUMANA

Pay attention - limited upside

The 3 months correlation between Blackrock and HUMANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield New and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Blackrock Muniyield 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 Blackrock Muniyield New 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 Blackrock Muniyield i.e., Blackrock Muniyield and HUMANA go up and down completely randomly.

Pair Corralation between Blackrock Muniyield and HUMANA

Considering the 90-day investment horizon Blackrock Muniyield New is expected to under-perform the HUMANA. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Muniyield New is 2.08 times less risky than HUMANA. The fund trades about -0.03 of its potential returns per unit of risk. The HUMANA INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  7,961  in HUMANA INC on March 4, 2024 and sell it today you would earn a total of  135.00  from holding HUMANA INC or generate 1.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Blackrock Muniyield New  vs.  HUMANA INC

Blackrock Muniyield New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Muniyield New has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Blackrock Muniyield is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

HUMANA INC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HUMANA INC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HUMANA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackrock Muniyield and HUMANA

The main advantage of trading using opposite Blackrock Muniyield and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield 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.

The idea behind Blackrock Muniyield New and HUMANA 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.