Correlation Between HUMANA and Yotta Acquisition
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By analyzing existing cross correlation between HUMANA INC and Yotta Acquisition, you can compare the effects of market volatilities on HUMANA and Yotta 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 Yotta Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Yotta Acquisition.
Diversification Opportunities for HUMANA and Yotta Acquisition
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and Yotta is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Yotta Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yotta 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 Yotta Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yotta Acquisition has no effect on the direction of HUMANA i.e., HUMANA and Yotta Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and Yotta Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to generate 171.02 times more return on investment than Yotta Acquisition. However, HUMANA is 171.02 times more volatile than Yotta Acquisition. It trades about 0.07 of its potential returns per unit of risk. Yotta Acquisition is currently generating about 0.05 per unit of risk. If you would invest 8,081 in HUMANA INC on August 29, 2024 and sell it today you would lose (46.00) from holding HUMANA INC or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.55% |
| Values | Daily Returns |
HUMANA INC vs. Yotta Acquisition
Performance |
| Timeline |
| HUMANA INC |
| Yotta Acquisition |
HUMANA and Yotta Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Yotta Acquisition
The main advantage of trading using opposite HUMANA and Yotta Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Yotta 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 Yotta Acquisition will offset losses from the drop in Yotta Acquisition's long position.The idea behind HUMANA INC and Yotta 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.| Yotta Acquisition vs. Western Acquisition Ventures | Yotta Acquisition vs. Technology Telecommunication | Yotta Acquisition vs. Metal Sky Star |
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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