Correlation Between Israel Acquisitions and HUMANA
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By analyzing existing cross correlation between Israel Acquisitions Corp and HUMANA INC, you can compare the effects of market volatilities on Israel Acquisitions 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 Israel Acquisitions with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Acquisitions and HUMANA.
Diversification Opportunities for Israel Acquisitions and HUMANA
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Israel and HUMANA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Israel Acquisitions Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Israel Acquisitions 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 Israel Acquisitions 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 Israel Acquisitions i.e., Israel Acquisitions and HUMANA go up and down completely randomly.
Pair Corralation between Israel Acquisitions and HUMANA
Given the investment horizon of 90 days Israel Acquisitions is expected to generate 2.64 times less return on investment than HUMANA. But when comparing it to its historical volatility, Israel Acquisitions Corp is 9.99 times less risky than HUMANA. It trades about 0.25 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,914 in HUMANA INC on February 2, 2024 and sell it today you would earn a total of 182.00 from holding HUMANA INC or generate 2.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
Israel Acquisitions Corp vs. HUMANA INC
Performance |
Timeline |
Israel Acquisitions Corp |
HUMANA INC |
Israel Acquisitions and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Israel Acquisitions and HUMANA
The main advantage of trading using opposite Israel Acquisitions and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Acquisitions 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.Israel Acquisitions vs. Aquagold International | Israel Acquisitions vs. Morningstar Unconstrained Allocation | Israel Acquisitions vs. High Yield Municipal Fund | Israel Acquisitions vs. SPACE |
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 CEOs Directory module to screen CEOs from public companies around the world.
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