Correlation Between Brookfield Infrastructure and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Brookfield Infrastructure and UnitedHealth Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Brookfield Infrastructure and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Infrastructure Partners and UnitedHealth Group CDR, you can compare the effects of market volatilities on Brookfield Infrastructure and UnitedHealth Group 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 Brookfield Infrastructure with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Infrastructure and UnitedHealth Group.
Diversification Opportunities for Brookfield Infrastructure and UnitedHealth Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Brookfield and UnitedHealth is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Infrastructure Part and UnitedHealth Group CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group CDR and Brookfield Infrastructure 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 Brookfield Infrastructure Partners are associated (or correlated) with UnitedHealth Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UnitedHealth Group CDR has no effect on the direction of Brookfield Infrastructure i.e., Brookfield Infrastructure and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Brookfield Infrastructure and UnitedHealth Group
Assuming the 90 days trading horizon Brookfield Infrastructure Partners is expected to generate 0.3 times more return on investment than UnitedHealth Group. However, Brookfield Infrastructure Partners is 3.34 times less risky than UnitedHealth Group. It trades about 0.13 of its potential returns per unit of risk. UnitedHealth Group CDR is currently generating about -0.3 per unit of risk. If you would invest 2,435 in Brookfield Infrastructure Partners on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Brookfield Infrastructure Partners or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Infrastructure Part vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Brookfield Infrastructure |
| UnitedHealth Group CDR |
Brookfield Infrastructure and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Infrastructure and UnitedHealth Group
The main advantage of trading using opposite Brookfield Infrastructure and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Infrastructure position performs unexpectedly, UnitedHealth Group 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 UnitedHealth Group will offset losses from the drop in UnitedHealth Group's long position.| Brookfield Infrastructure vs. Precious Metals And | Brookfield Infrastructure vs. Ramp Metals | Brookfield Infrastructure vs. Computer Modelling Group | Brookfield Infrastructure vs. Sparx Technology |
| UnitedHealth Group vs. MTY Food Group | UnitedHealth Group vs. Altair Resources | UnitedHealth Group vs. VIP Entertainment Technologies | UnitedHealth Group vs. NeXGold Mining Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |