Correlation Between HUMANA and Denali Capital
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By analyzing existing cross correlation between HUMANA INC and Denali Capital Acquisition, you can compare the effects of market volatilities on HUMANA and Denali Capital 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 Denali Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Denali Capital.
Diversification Opportunities for HUMANA and Denali Capital
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and Denali is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Denali Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denali Capital Acqui 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 Denali Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denali Capital Acqui has no effect on the direction of HUMANA i.e., HUMANA and Denali Capital go up and down completely randomly.
Pair Corralation between HUMANA and Denali Capital
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Denali Capital. In addition to that, HUMANA is 2.4 times more volatile than Denali Capital Acquisition. It trades about -0.15 of its total potential returns per unit of risk. Denali Capital Acquisition is currently generating about 0.21 per unit of volatility. If you would invest 1,164 in Denali Capital Acquisition on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Denali Capital Acquisition or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HUMANA INC vs. Denali Capital Acquisition
Performance |
| Timeline |
| HUMANA INC |
| Denali Capital Acqui |
HUMANA and Denali Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Denali Capital
The main advantage of trading using opposite HUMANA and Denali Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Denali Capital 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 Denali Capital will offset losses from the drop in Denali Capital's long position.| HUMANA vs. Doubledown Interactive Co | HUMANA vs. Golden Matrix Group | HUMANA vs. Skechers USA | HUMANA vs. NetEase |
| Denali Capital vs. Welsbach Technology Metals | Denali Capital vs. Broad Capital Acquisition | Denali Capital vs. Western Acquisition Ventures |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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