Correlation Between AlphaVest Acquisition and HUMANA
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By analyzing existing cross correlation between AlphaVest Acquisition Corp and HUMANA INC, you can compare the effects of market volatilities on AlphaVest 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 AlphaVest Acquisition with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlphaVest Acquisition and HUMANA.
Diversification Opportunities for AlphaVest Acquisition and HUMANA
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AlphaVest and HUMANA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AlphaVest 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 AlphaVest 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 AlphaVest 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 AlphaVest Acquisition i.e., AlphaVest Acquisition and HUMANA go up and down completely randomly.
Pair Corralation between AlphaVest Acquisition and HUMANA
Given the investment horizon of 90 days AlphaVest Acquisition Corp is expected to generate 0.13 times more return on investment than HUMANA. However, AlphaVest Acquisition Corp is 7.83 times less risky than HUMANA. It trades about 0.3 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.18 per unit of risk. If you would invest 1,113 in AlphaVest Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 22.00 from holding AlphaVest Acquisition Corp or generate 1.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
AlphaVest Acquisition Corp vs. HUMANA INC
Performance |
Timeline |
AlphaVest Acquisition |
HUMANA INC |
AlphaVest Acquisition and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AlphaVest Acquisition and HUMANA
The main advantage of trading using opposite AlphaVest Acquisition and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlphaVest 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.AlphaVest Acquisition vs. HUMANA INC | AlphaVest Acquisition vs. Barloworld Ltd ADR | AlphaVest Acquisition vs. Morningstar Unconstrained Allocation | AlphaVest 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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