Correlation Between GP Act and HUMANA
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By analyzing existing cross correlation between GP Act III Acquisition and HUMANA INC, you can compare the effects of market volatilities on GP Act 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 GP Act with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Act and HUMANA.
Diversification Opportunities for GP Act and HUMANA
Excellent diversification
The 3 months correlation between GPAT and HUMANA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GP Act III Acquisition and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and GP Act 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 GP Act III 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 GP Act i.e., GP Act and HUMANA go up and down completely randomly.
Pair Corralation between GP Act and HUMANA
Given the investment horizon of 90 days GP Act III Acquisition is expected to generate 0.19 times more return on investment than HUMANA. However, GP Act III Acquisition is 5.38 times less risky than HUMANA. It trades about 0.11 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.0 per unit of risk. If you would invest 999.00 in GP Act III Acquisition on September 12, 2024 and sell it today you would earn a total of 15.00 from holding GP Act III Acquisition or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.29% |
| Values | Daily Returns |
GP Act III Acquisition vs. HUMANA INC
Performance |
| Timeline |
| GP Act III |
| HUMANA INC |
GP Act and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Act and HUMANA
The main advantage of trading using opposite GP Act and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Act 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.| GP Act vs. HUMANA INC | GP Act vs. Barloworld Ltd ADR | GP Act vs. Morningstar Unconstrained Allocation | GP Act 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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