Correlation Between Alchemy Investments and HUMANA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alchemy Investments Acquisition and HUMANA INC, you can compare the effects of market volatilities on Alchemy Investments 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 Alchemy Investments with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alchemy Investments and HUMANA.
Diversification Opportunities for Alchemy Investments and HUMANA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alchemy and HUMANA is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Alchemy Investments Acquisitio and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Alchemy Investments 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 Alchemy Investments Acquisition 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 Alchemy Investments i.e., Alchemy Investments and HUMANA go up and down completely randomly.
Pair Corralation between Alchemy Investments and HUMANA
Assuming the 90 days horizon Alchemy Investments Acquisition is expected to generate 25.47 times more return on investment than HUMANA. However, Alchemy Investments is 25.47 times more volatile than HUMANA INC. It trades about 0.05 of its potential returns per unit of risk. HUMANA INC is currently generating about 0.0 per unit of risk. If you would invest 18.00 in Alchemy Investments Acquisition on September 12, 2024 and sell it today you would lose (8.00) from holding Alchemy Investments Acquisition or give up 44.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 41.49% |
Values | Daily Returns |
Alchemy Investments Acquisitio vs. HUMANA INC
Performance |
Timeline |
Alchemy Investments |
HUMANA INC |
Alchemy Investments and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alchemy Investments and HUMANA
The main advantage of trading using opposite Alchemy Investments and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemy Investments 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.Alchemy Investments vs. HUMANA INC | Alchemy Investments vs. Barloworld Ltd ADR | Alchemy Investments vs. Morningstar Unconstrained Allocation | Alchemy Investments 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |