Correlation Between HUMANA and Kairous Acquisition
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By analyzing existing cross correlation between HUMANA INC and Kairous Acquisition Corp, you can compare the effects of market volatilities on HUMANA and Kairous 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 Kairous Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Kairous Acquisition.
Diversification Opportunities for HUMANA and Kairous Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between HUMANA and Kairous is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Kairous Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kairous Acquisition Corp 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 Kairous Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kairous Acquisition Corp has no effect on the direction of HUMANA i.e., HUMANA and Kairous Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and Kairous Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to generate 50.73 times more return on investment than Kairous Acquisition. However, HUMANA is 50.73 times more volatile than Kairous Acquisition Corp. It trades about 0.07 of its potential returns per unit of risk. Kairous Acquisition Corp is currently generating about 0.03 per unit of risk. If you would invest 7,891 in HUMANA INC on September 12, 2024 and sell it today you would lose (196.00) from holding HUMANA INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.01% |
| Values | Daily Returns |
HUMANA INC vs. Kairous Acquisition Corp
Performance |
| Timeline |
| HUMANA INC |
| Kairous Acquisition Corp |
HUMANA and Kairous Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Kairous Acquisition
The main advantage of trading using opposite HUMANA and Kairous Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Kairous 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 Kairous Acquisition will offset losses from the drop in Kairous Acquisition's long position.The idea behind HUMANA INC and Kairous Acquisition Corp 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.| Kairous Acquisition vs. HUMANA INC | Kairous Acquisition vs. Barloworld Ltd ADR | Kairous Acquisition vs. Morningstar Unconstrained Allocation | Kairous Acquisition vs. Thrivent High Yield |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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