Correlation Between PowerUp Acquisition and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between PowerUp Acquisition Corp and HUMANA INC, you can compare the effects of market volatilities on PowerUp Acquisition 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 PowerUp Acquisition with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and HUMANA.
Diversification Opportunities for PowerUp Acquisition and HUMANA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PowerUp and HUMANA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and PowerUp Acquisition 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 PowerUp Acquisition Corp 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 PowerUp Acquisition i.e., PowerUp Acquisition and HUMANA go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and HUMANA
Given the investment horizon of 90 days PowerUp Acquisition Corp is expected to under-perform the HUMANA. In addition to that, PowerUp Acquisition is 1.91 times more volatile than HUMANA INC. It trades about -0.06 of its total potential returns per unit of risk. HUMANA INC is currently generating about -0.07 per unit of volatility. If you would invest 8,111 in HUMANA INC on August 29, 2024 and sell it today you would lose (76.00) from holding HUMANA INC or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. HUMANA INC
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| HUMANA INC |
PowerUp Acquisition and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and HUMANA
The main advantage of trading using opposite PowerUp Acquisition and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition 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 PowerUp Acquisition Corp 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.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |