Correlation Between HUMANA and Gores Holdings
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By analyzing existing cross correlation between HUMANA INC and Gores Holdings IX, you can compare the effects of market volatilities on HUMANA and Gores Holdings 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 Gores Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Gores Holdings.
Diversification Opportunities for HUMANA and Gores Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUMANA and Gores is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Gores Holdings IX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gores Holdings IX 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 Gores Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gores Holdings IX has no effect on the direction of HUMANA i.e., HUMANA and Gores Holdings go up and down completely randomly.
Pair Corralation between HUMANA and Gores Holdings
Assuming the 90 days trading horizon HUMANA is expected to generate 2.43 times less return on investment than Gores Holdings. But when comparing it to its historical volatility, HUMANA INC is 1.53 times less risky than Gores Holdings. It trades about 0.07 of its potential returns per unit of risk. Gores Holdings IX is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Gores Holdings IX on August 26, 2024 and sell it today you would lose (15.56) from holding Gores Holdings IX or give up 77.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 71.73% |
| Values | Daily Returns |
HUMANA INC vs. Gores Holdings IX
Performance |
| Timeline |
| HUMANA INC |
| Gores Holdings IX |
HUMANA and Gores Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Gores Holdings
The main advantage of trading using opposite HUMANA and Gores Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Gores Holdings 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 Gores Holdings will offset losses from the drop in Gores Holdings' long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| Gores Holdings vs. PowerUp Acquisition Corp | Gores Holdings vs. Aurora Innovation | Gores Holdings vs. HUMANA INC | Gores Holdings 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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