Correlation Between Brookfield Offi and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Brookfield Offi 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 Offi 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 Offi Pro and UnitedHealth Group CDR, you can compare the effects of market volatilities on Brookfield Offi 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 Offi with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Offi and UnitedHealth Group.
Diversification Opportunities for Brookfield Offi and UnitedHealth Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and UnitedHealth is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Offi Pro 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 Offi 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 Offi Pro 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 Offi i.e., Brookfield Offi and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Brookfield Offi and UnitedHealth Group
Assuming the 90 days trading horizon Brookfield Offi Pro is expected to generate 0.41 times more return on investment than UnitedHealth Group. However, Brookfield Offi Pro is 2.42 times less risky than UnitedHealth Group. It trades about 0.09 of its potential returns per unit of risk. UnitedHealth Group CDR is currently generating about -0.13 per unit of risk. If you would invest 1,419 in Brookfield Offi Pro on October 28, 2024 and sell it today you would earn a total of 47.00 from holding Brookfield Offi Pro or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Offi Pro vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Brookfield Offi Pro |
| UnitedHealth Group CDR |
Brookfield Offi and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Offi and UnitedHealth Group
The main advantage of trading using opposite Brookfield Offi and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Offi 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 Offi vs. Titanium Transportation Group | Brookfield Offi vs. Computer Modelling Group | Brookfield Offi vs. Maple Peak Investments | Brookfield Offi vs. Western Investment |
| UnitedHealth Group vs. Amazon CDR | UnitedHealth Group vs. Alphabet Inc CDR | UnitedHealth Group vs. Apple Inc CDR | UnitedHealth Group vs. Microsoft Corp CDR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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