Correlation Between HUMANA and Finnovate Acquisition
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By analyzing existing cross correlation between HUMANA INC and Finnovate Acquisition Corp, you can compare the effects of market volatilities on HUMANA and Finnovate 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 Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Finnovate Acquisition.
Diversification Opportunities for HUMANA and Finnovate Acquisition
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUMANA and Finnovate is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate 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 Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of HUMANA i.e., HUMANA and Finnovate Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and Finnovate Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to generate 504.08 times more return on investment than Finnovate Acquisition. However, HUMANA is 504.08 times more volatile than Finnovate Acquisition Corp. It trades about 0.07 of its potential returns per unit of risk. Finnovate Acquisition Corp is currently generating about 0.17 per unit of risk. If you would invest 8,030 in HUMANA INC on August 27, 2024 and sell it today you would earn a total of 5.00 from holding HUMANA INC or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
HUMANA INC vs. Finnovate Acquisition Corp
Performance |
| Timeline |
| HUMANA INC |
| Finnovate Acquisition |
HUMANA and Finnovate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Finnovate Acquisition
The main advantage of trading using opposite HUMANA and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Finnovate 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 Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.| HUMANA vs. Ultra Clean Holdings | HUMANA vs. Dream Homes Development | HUMANA vs. JBG SMITH Properties | HUMANA vs. Allegheny Technologies Incorporated |
| Finnovate Acquisition vs. Broad Capital Acquisition | Finnovate Acquisition vs. Welsbach Technology Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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