Correlation Between HUMANA and PowerUp Acquisition
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By analyzing existing cross correlation between HUMANA INC and PowerUp Acquisition Corp, you can compare the effects of market volatilities on HUMANA and PowerUp 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and PowerUp Acquisition.
Diversification Opportunities for HUMANA and PowerUp Acquisition
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HUMANA and PowerUp is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of HUMANA i.e., HUMANA and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and PowerUp Acquisition
Assuming the 90 days trading horizon HUMANA is expected to generate 1.92 times less return on investment than PowerUp Acquisition. But when comparing it to its historical volatility, HUMANA INC is 1.26 times less risky than PowerUp Acquisition. It trades about 0.07 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10.00 in PowerUp Acquisition Corp on August 24, 2024 and sell it today you would lose (7.90) from holding PowerUp Acquisition Corp or give up 79.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.31% |
| Values | Daily Returns |
HUMANA INC vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| HUMANA INC |
| PowerUp Acquisition Corp |
HUMANA and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and PowerUp Acquisition
The main advantage of trading using opposite HUMANA and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, PowerUp 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| HUMANA vs. Drilling Tools International | HUMANA vs. Delek Drilling | HUMANA vs. Vera Bradley | HUMANA vs. Duluth Holdings |
| PowerUp Acquisition vs. PowerUp Acquisition Corp | PowerUp Acquisition vs. Aurora Innovation | PowerUp Acquisition vs. HUMANA INC | PowerUp Acquisition 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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