Correlation Between HUMANA and Alchemy Investments
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By analyzing existing cross correlation between HUMANA INC and Alchemy Investments Acquisition, you can compare the effects of market volatilities on HUMANA and Alchemy Investments 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 HUMANA with a short position of Alchemy Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alchemy Investments.
Diversification Opportunities for HUMANA and Alchemy Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Alchemy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alchemy Investments Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alchemy Investments and HUMANA 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 HUMANA INC are associated (or correlated) with Alchemy Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchemy Investments has no effect on the direction of HUMANA i.e., HUMANA and Alchemy Investments go up and down completely randomly.
Pair Corralation between HUMANA and Alchemy Investments
Assuming the 90 days trading horizon HUMANA INC is expected to generate 83.4 times more return on investment than Alchemy Investments. However, HUMANA is 83.4 times more volatile than Alchemy Investments Acquisition. It trades about 0.07 of its potential returns per unit of risk. Alchemy Investments Acquisition is currently generating about 0.03 per unit of risk. If you would invest 8,028 in HUMANA INC on August 30, 2024 and sell it today you would lose (333.00) from holding HUMANA INC or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.56% |
| Values | Daily Returns |
HUMANA INC vs. Alchemy Investments Acquisitio
Performance |
| Timeline |
| HUMANA INC |
| Alchemy Investments |
HUMANA and Alchemy Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alchemy Investments
The main advantage of trading using opposite HUMANA and Alchemy Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alchemy Investments 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 Alchemy Investments will offset losses from the drop in Alchemy Investments' long position.The idea behind HUMANA INC and Alchemy Investments Acquisition 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.| Alchemy Investments vs. Cebu Air ADR | Alchemy Investments vs. Barrick Gold Corp | Alchemy Investments vs. East Africa Metals | Alchemy Investments vs. CECO Environmental Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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