Correlation Between CBLT and Humatech

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

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

Diversification Opportunities for CBLT and Humatech

-0.51

Correlation Coefficient

CBLT  Humatech

Excellent diversification

The 3 months correlation between CBLT and Humatech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CBLT Inc and Humatech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humatech and CBLT 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 CBLT Inc are associated (or correlated) with Humatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humatech has no effect on the direction of CBLT i.e., CBLT and Humatech go up and down completely randomly.

Pair Corralation between CBLT and Humatech

Assuming the 90 days horizon CBLT Inc is expected to under-perform the Humatech. But the pink sheet apears to be less risky and, when comparing its historical volatility, CBLT Inc is 10.79 times less risky than Humatech. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Humatech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Humatech on July 27, 2025 and sell it today you would earn a total of  0.01  from holding Humatech or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

CBLT Inc  vs.  Humatech

CBLT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CBLT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Humatech

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Humatech are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile primary indicators, Humatech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CBLT and Humatech

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

The idea behind CBLT Inc and Humatech 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.