Correlation Between Calian Technologies and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Calian Technologies 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 Calian Technologies and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and UnitedHealth Group CDR, you can compare the effects of market volatilities on Calian Technologies 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 Calian Technologies with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and UnitedHealth Group.
Diversification Opportunities for Calian Technologies and UnitedHealth Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calian and UnitedHealth is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies 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 Calian Technologies 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 Calian Technologies 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 Calian Technologies i.e., Calian Technologies and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Calian Technologies and UnitedHealth Group
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the UnitedHealth Group. In addition to that, Calian Technologies is 1.06 times more volatile than UnitedHealth Group CDR. It trades about -0.02 of its total potential returns per unit of risk. UnitedHealth Group CDR is currently generating about 0.02 per unit of volatility. If you would invest 2,298 in UnitedHealth Group CDR on October 11, 2024 and sell it today you would earn a total of 222.00 from holding UnitedHealth Group CDR or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Calian Technologies |
| UnitedHealth Group CDR |
Calian Technologies and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and UnitedHealth Group
The main advantage of trading using opposite Calian Technologies and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies 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.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| UnitedHealth Group vs. Leveljump Healthcare Corp | UnitedHealth Group vs. CNJ Capital Investments | UnitedHealth Group vs. Nova Leap Health | UnitedHealth Group vs. CVS HEALTH 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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