Correlation Between HUMANA and Roth CH
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By analyzing existing cross correlation between HUMANA INC and Roth CH Acquisition, you can compare the effects of market volatilities on HUMANA and Roth CH 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 Roth CH. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Roth CH.
Diversification Opportunities for HUMANA and Roth CH
Very good diversification
The 3 months correlation between HUMANA and Roth is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Roth CH Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roth CH 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 Roth CH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roth CH Acquisition has no effect on the direction of HUMANA i.e., HUMANA and Roth CH go up and down completely randomly.
Pair Corralation between HUMANA and Roth CH
Assuming the 90 days trading horizon HUMANA INC is expected to generate 61.75 times more return on investment than Roth CH. However, HUMANA is 61.75 times more volatile than Roth CH Acquisition. It trades about 0.08 of its potential returns per unit of risk. Roth CH Acquisition is currently generating about 0.02 per unit of risk. If you would invest 8,036 in HUMANA INC on August 30, 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 | 95.43% |
| Values | Daily Returns |
HUMANA INC vs. Roth CH Acquisition
Performance |
| Timeline |
| HUMANA INC |
| Roth CH Acquisition |
HUMANA and Roth CH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Roth CH
The main advantage of trading using opposite HUMANA and Roth CH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Roth CH 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 Roth CH will offset losses from the drop in Roth CH's long position.The idea behind HUMANA INC and Roth CH Acquisition 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.| Roth CH vs. Patria Latin American | Roth CH vs. ABIVAX Socit Anonyme | Roth CH vs. Pinnacle Sherman Multi Strategy | Roth CH vs. Morningstar Unconstrained Allocation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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