Correlation Between Firan Technology and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Firan Technology 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 Firan Technology and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firan Technology Group and UnitedHealth Group CDR, you can compare the effects of market volatilities on Firan Technology 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 Firan Technology with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and UnitedHealth Group.
Diversification Opportunities for Firan Technology and UnitedHealth Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Firan and UnitedHealth is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group 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 Firan Technology 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 Firan Technology Group 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 Firan Technology i.e., Firan Technology and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Firan Technology and UnitedHealth Group
Assuming the 90 days trading horizon Firan Technology is expected to generate 1.13 times less return on investment than UnitedHealth Group. In addition to that, Firan Technology is 1.04 times more volatile than UnitedHealth Group CDR. It trades about 0.14 of its total potential returns per unit of risk. UnitedHealth Group CDR is currently generating about 0.17 per unit of volatility. If you would invest 2,701 in UnitedHealth Group CDR on August 29, 2024 and sell it today you would earn a total of 189.00 from holding UnitedHealth Group CDR or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Firan Technology |
| UnitedHealth Group CDR |
Firan Technology and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and UnitedHealth Group
The main advantage of trading using opposite Firan Technology and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology 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.| Firan Technology vs. Cielo Waste Solutions | Firan Technology vs. CHAR Technologies | Firan Technology vs. Forstrong Global Income | Firan Technology vs. Terreno Resources Corp |
| UnitedHealth Group vs. Bip Investment Corp | UnitedHealth Group vs. Firan Technology Group | UnitedHealth Group vs. Brookfield Investments | UnitedHealth Group vs. Northstar Clean Technologies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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