Correlation Between HUMANA and CF Acquisition
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By analyzing existing cross correlation between HUMANA INC and CF Acquisition VII, you can compare the effects of market volatilities on HUMANA and CF 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 CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and CF Acquisition.
Diversification Opportunities for HUMANA and CF Acquisition
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and CFFSU is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and CF Acquisition VII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition VII 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 CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition VII has no effect on the direction of HUMANA i.e., HUMANA and CF Acquisition go up and down completely randomly.
Pair Corralation between HUMANA and CF Acquisition
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the CF Acquisition. In addition to that, HUMANA is 2.31 times more volatile than CF Acquisition VII. It trades about -0.18 of its total potential returns per unit of risk. CF Acquisition VII is currently generating about 0.16 per unit of volatility. If you would invest 1,078 in CF Acquisition VII on September 13, 2024 and sell it today you would earn a total of 40.00 from holding CF Acquisition VII or generate 3.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.31% |
Values | Daily Returns |
HUMANA INC vs. CF Acquisition VII
Performance |
Timeline |
HUMANA INC |
CF Acquisition VII |
HUMANA and CF Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and CF Acquisition
The main advantage of trading using opposite HUMANA and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, CF 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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