Correlation Between Citigroup and UNITEDHEALTH
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By analyzing existing cross correlation between Citigroup and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Citigroup and UNITEDHEALTH 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 Citigroup with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and UNITEDHEALTH.
Diversification Opportunities for Citigroup and UNITEDHEALTH
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and UNITEDHEALTH is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and UNITEDHEALTH GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITEDHEALTH GROUP INC and Citigroup 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 Citigroup are associated (or correlated) with UNITEDHEALTH. 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 INC has no effect on the direction of Citigroup i.e., Citigroup and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Citigroup and UNITEDHEALTH
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the UNITEDHEALTH. In addition to that, Citigroup is 2.19 times more volatile than UNITEDHEALTH GROUP INC. It trades about -0.36 of its total potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.01 per unit of volatility. If you would invest 9,855 in UNITEDHEALTH GROUP INC on December 15, 2024 and sell it today you would earn a total of 4.00 from holding UNITEDHEALTH GROUP INC or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. UNITEDHEALTH GROUP INC
Performance |
| Timeline |
| Citigroup |
| UNITEDHEALTH GROUP INC |
Citigroup and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and UNITEDHEALTH
The main advantage of trading using opposite Citigroup and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, UNITEDHEALTH 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 will offset losses from the drop in UNITEDHEALTH's long position.| Citigroup vs. JPMorgan Chase Co | ||
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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