Correlation Between HUMANA and AlphaVest Acquisition
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By analyzing existing cross correlation between HUMANA INC and AlphaVest Acquisition Corp, you can compare the effects of market volatilities on HUMANA and AlphaVest 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 AlphaVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and AlphaVest Acquisition.
Diversification Opportunities for HUMANA and AlphaVest Acquisition
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and AlphaVest is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and AlphaVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaVest 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 AlphaVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaVest Acquisition has no effect on the direction of HUMANA i.e., HUMANA and AlphaVest Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and AlphaVest Acquisition
Assuming the 90 days trading horizon HUMANA is expected to generate 1.97 times less return on investment than AlphaVest Acquisition. But when comparing it to its historical volatility, HUMANA INC is 1.33 times less risky than AlphaVest Acquisition. It trades about 0.07 of its potential returns per unit of risk. AlphaVest Acquisition Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.00 in AlphaVest Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 15.88 from holding AlphaVest Acquisition Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.99% |
| Values | Daily Returns |
HUMANA INC vs. AlphaVest Acquisition Corp
Performance |
| Timeline |
| HUMANA INC |
| AlphaVest Acquisition |
HUMANA and AlphaVest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and AlphaVest Acquisition
The main advantage of trading using opposite HUMANA and AlphaVest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, AlphaVest 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 AlphaVest Acquisition will offset losses from the drop in AlphaVest Acquisition's long position.The idea behind HUMANA INC and AlphaVest Acquisition Corp 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.| AlphaVest Acquisition vs. HUMANA INC | AlphaVest Acquisition vs. Barloworld Ltd ADR | AlphaVest Acquisition vs. Morningstar Unconstrained Allocation | AlphaVest Acquisition 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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