Correlation Between HUMANA and AlphaTime Acquisition
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By analyzing existing cross correlation between HUMANA INC and AlphaTime Acquisition Corp, you can compare the effects of market volatilities on HUMANA and AlphaTime Acquisition 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 AlphaTime Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and AlphaTime Acquisition.
Diversification Opportunities for HUMANA and AlphaTime Acquisition
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and AlphaTime is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and AlphaTime Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaTime Acquisition 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 AlphaTime Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaTime Acquisition has no effect on the direction of HUMANA i.e., HUMANA and AlphaTime Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and AlphaTime Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the AlphaTime Acquisition. In addition to that, HUMANA is 6.67 times more volatile than AlphaTime Acquisition Corp. It trades about -0.16 of its total potential returns per unit of risk. AlphaTime Acquisition Corp is currently generating about 0.2 per unit of volatility. If you would invest 1,124 in AlphaTime Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 14.00 from holding AlphaTime Acquisition Corp or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HUMANA INC vs. AlphaTime Acquisition Corp
Performance |
| Timeline |
| HUMANA INC |
| AlphaTime Acquisition |
HUMANA and AlphaTime Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and AlphaTime Acquisition
The main advantage of trading using opposite HUMANA and AlphaTime Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, AlphaTime Acquisition 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 AlphaTime Acquisition will offset losses from the drop in AlphaTime Acquisition's long position.| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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