Correlation Between HUMANA and Goldenstone Acquisition
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By analyzing existing cross correlation between HUMANA INC and Goldenstone Acquisition Limited, you can compare the effects of market volatilities on HUMANA and Goldenstone 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 Goldenstone Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Goldenstone Acquisition.
Diversification Opportunities for HUMANA and Goldenstone Acquisition
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Goldenstone is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Goldenstone Acquisition Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldenstone 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 Goldenstone Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldenstone Acquisition has no effect on the direction of HUMANA i.e., HUMANA and Goldenstone Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and Goldenstone Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to generate 0.08 times more return on investment than Goldenstone Acquisition. However, HUMANA INC is 11.89 times less risky than Goldenstone Acquisition. It trades about -0.18 of its potential returns per unit of risk. Goldenstone Acquisition Limited is currently generating about -0.52 per unit of risk. If you would invest 8,036 in HUMANA INC on September 2, 2024 and sell it today you would lose (341.00) from holding HUMANA INC or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.0% |
| Values | Daily Returns |
HUMANA INC vs. Goldenstone Acquisition Limite
Performance |
| Timeline |
| HUMANA INC |
| Goldenstone Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
HUMANA and Goldenstone Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Goldenstone Acquisition
The main advantage of trading using opposite HUMANA and Goldenstone Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Goldenstone 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 Goldenstone Acquisition will offset losses from the drop in Goldenstone Acquisition's long position.The idea behind HUMANA INC and Goldenstone Acquisition Limited 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.| Goldenstone Acquisition vs. Visa Class A | Goldenstone Acquisition vs. Diamond Hill Investment | Goldenstone Acquisition vs. Distoken Acquisition | Goldenstone Acquisition vs. AllianceBernstein Holding LP |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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