Correlation Between HUMANA and Valuence Merger
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By analyzing existing cross correlation between HUMANA INC and Valuence Merger Corp, you can compare the effects of market volatilities on HUMANA and Valuence Merger 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 Valuence Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Valuence Merger.
Diversification Opportunities for HUMANA and Valuence Merger
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Valuence is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Valuence Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valuence Merger 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 Valuence Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valuence Merger Corp has no effect on the direction of HUMANA i.e., HUMANA and Valuence Merger go up and down completely randomly.
Pair Corralation between HUMANA and Valuence Merger
Assuming the 90 days trading horizon HUMANA INC is expected to generate 406.83 times more return on investment than Valuence Merger. However, HUMANA is 406.83 times more volatile than Valuence Merger Corp. It trades about 0.07 of its potential returns per unit of risk. Valuence Merger Corp is currently generating about 0.11 per unit of risk. If you would invest 7,962 in HUMANA INC on August 26, 2024 and sell it today you would lose (267.00) from holding HUMANA INC or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.96% |
| Values | Daily Returns |
HUMANA INC vs. Valuence Merger Corp
Performance |
| Timeline |
| HUMANA INC |
| Valuence Merger Corp |
HUMANA and Valuence Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Valuence Merger
The main advantage of trading using opposite HUMANA and Valuence Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Valuence Merger 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 Valuence Merger will offset losses from the drop in Valuence Merger's long position.| HUMANA vs. Deluxe | HUMANA vs. Vita Coco | HUMANA vs. Willamette Valley Vineyards | HUMANA vs. Global E Online |
| Valuence Merger vs. PowerUp Acquisition Corp | Valuence Merger vs. Aurora Innovation | Valuence Merger vs. HUMANA INC | Valuence Merger 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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