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
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and AlphaVest is -0.12. 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 INC is expected to generate 0.67 times more return on investment than AlphaVest Acquisition. However, HUMANA INC is 1.5 times less risky than AlphaVest Acquisition. It trades about -0.18 of its potential returns per unit of risk. AlphaVest Acquisition Corp is currently generating about -0.21 per unit of risk. If you would invest 8,404 in HUMANA INC on August 26, 2024 and sell it today you would lose (369.00) from holding HUMANA INC or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| 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.| HUMANA vs. Balchem | HUMANA vs. Stepan Company | HUMANA vs. Videolocity International | HUMANA vs. Luxfer Holdings PLC |
| AlphaVest Acquisition vs. PowerUp Acquisition Corp | AlphaVest Acquisition vs. Aurora Innovation | AlphaVest Acquisition vs. HUMANA INC | AlphaVest Acquisition vs. Aquagold International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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