Correlation Between Enduro Metals and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Enduro Metals 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 Enduro Metals and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enduro Metals Corp and UnitedHealth Group CDR, you can compare the effects of market volatilities on Enduro Metals 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 Enduro Metals with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enduro Metals and UnitedHealth Group.
Diversification Opportunities for Enduro Metals and UnitedHealth Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enduro and UnitedHealth is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Enduro Metals Corp 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 Enduro Metals 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 Enduro Metals Corp 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 Enduro Metals i.e., Enduro Metals and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Enduro Metals and UnitedHealth Group
Assuming the 90 days trading horizon Enduro Metals Corp is expected to generate 2.15 times more return on investment than UnitedHealth Group. However, Enduro Metals is 2.15 times more volatile than UnitedHealth Group CDR. It trades about 0.02 of its potential returns per unit of risk. UnitedHealth Group CDR is currently generating about -0.19 per unit of risk. If you would invest 17.00 in Enduro Metals Corp on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Enduro Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enduro Metals Corp vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Enduro Metals Corp |
| UnitedHealth Group CDR |
Enduro Metals and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enduro Metals and UnitedHealth Group
The main advantage of trading using opposite Enduro Metals and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enduro Metals 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.| Enduro Metals vs. Scottie Resources Corp | Enduro Metals vs. Goliath Resources | Enduro Metals vs. Tudor Gold Corp | Enduro Metals vs. Brixton Metals |
| UnitedHealth Group vs. Western Investment | UnitedHealth Group vs. Canadian General Investments | UnitedHealth Group vs. Dream Office Real | UnitedHealth Group vs. Leons Furniture Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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