Correlation Between Denali Capital and HUMANA
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By analyzing existing cross correlation between Denali Capital Acquisition and HUMANA INC, you can compare the effects of market volatilities on Denali Capital 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 Denali Capital with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Denali Capital and HUMANA.
Diversification Opportunities for Denali Capital and HUMANA
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Denali and HUMANA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Denali Capital Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Denali Capital 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 Denali Capital 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 Denali Capital i.e., Denali Capital and HUMANA go up and down completely randomly.
Pair Corralation between Denali Capital and HUMANA
Given the investment horizon of 90 days Denali Capital Acquisition is expected to generate 0.52 times more return on investment than HUMANA. However, Denali Capital Acquisition is 1.94 times less risky than HUMANA. It trades about 0.21 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,164 in Denali Capital Acquisition on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Denali Capital Acquisition or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Denali Capital Acquisition vs. HUMANA INC
Performance |
| Timeline |
| Denali Capital Acqui |
| HUMANA INC |
Denali Capital and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Denali Capital and HUMANA
The main advantage of trading using opposite Denali Capital and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Denali Capital 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.| Denali Capital vs. Visa Class A | Denali Capital vs. Diamond Hill Investment | Denali Capital vs. Distoken Acquisition | Denali Capital vs. AllianceBernstein Holding LP |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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