Correlation Between Alpha Star and HUMANA
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By analyzing existing cross correlation between Alpha Star Acquisition and HUMANA INC, you can compare the effects of market volatilities on Alpha Star 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 Alpha Star with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Star and HUMANA.
Diversification Opportunities for Alpha Star and HUMANA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alpha and HUMANA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Star Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Alpha Star 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 Alpha Star Acquisition 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 Alpha Star i.e., Alpha Star and HUMANA go up and down completely randomly.
Pair Corralation between Alpha Star and HUMANA
Assuming the 90 days horizon Alpha Star Acquisition is expected to generate 2.32 times more return on investment than HUMANA. However, Alpha Star is 2.32 times more volatile than HUMANA INC. It trades about 0.17 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 per unit of risk. If you would invest 14.00 in Alpha Star Acquisition on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Alpha Star Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.01% |
| Values | Daily Returns |
Alpha Star Acquisition vs. HUMANA INC
Performance |
| Timeline |
| Alpha Star Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| HUMANA INC |
Alpha Star and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Star and HUMANA
The main advantage of trading using opposite Alpha Star and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Star 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.| Alpha Star vs. HUMANA INC | Alpha Star vs. Barloworld Ltd ADR | Alpha Star vs. Morningstar Unconstrained Allocation | Alpha Star vs. Thrivent High Yield |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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