Correlation Between WinVest Acquisition and HUMANA
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By analyzing existing cross correlation between WinVest Acquisition Corp and HUMANA INC, you can compare the effects of market volatilities on WinVest Acquisition and HUMANA 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 WinVest Acquisition with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinVest Acquisition and HUMANA.
Diversification Opportunities for WinVest Acquisition and HUMANA
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WinVest and HUMANA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and WinVest Acquisition 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 WinVest Acquisition Corp are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and HUMANA go up and down completely randomly.
Pair Corralation between WinVest Acquisition and HUMANA
Assuming the 90 days horizon WinVest Acquisition is expected to generate 151.96 times less return on investment than HUMANA. But when comparing it to its historical volatility, WinVest Acquisition Corp is 36.01 times less risky than HUMANA. It trades about 0.02 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,953 in HUMANA INC on September 12, 2024 and sell it today you would lose (258.00) from holding HUMANA INC or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
WinVest Acquisition Corp vs. HUMANA INC
Performance |
| Timeline |
| WinVest Acquisition Corp |
| HUMANA INC |
WinVest Acquisition and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinVest Acquisition and HUMANA
The main advantage of trading using opposite WinVest Acquisition and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinVest Acquisition position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| WinVest Acquisition vs. HUMANA INC | WinVest Acquisition vs. Barloworld Ltd ADR | WinVest Acquisition vs. Morningstar Unconstrained Allocation | WinVest 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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