Correlation Between GE Aerospace and UNITEDHEALTH
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By analyzing existing cross correlation between GE Aerospace and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on GE Aerospace 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 GE Aerospace with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and UNITEDHEALTH.
Diversification Opportunities for GE Aerospace and UNITEDHEALTH
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and UNITEDHEALTH is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace 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 GE Aerospace 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 GE Aerospace 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 GE Aerospace i.e., GE Aerospace and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between GE Aerospace and UNITEDHEALTH
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the UNITEDHEALTH. In addition to that, GE Aerospace is 1.22 times more volatile than UNITEDHEALTH GROUP INC. It trades about -0.23 of its total potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.36 per unit of volatility. If you would invest 8,035 in UNITEDHEALTH GROUP INC on December 14, 2024 and sell it today you would earn a total of 769.00 from holding UNITEDHEALTH GROUP INC or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
GE Aerospace vs. UNITEDHEALTH GROUP INC
Performance |
| Timeline |
| GE Aerospace |
| UNITEDHEALTH GROUP INC |
GE Aerospace and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and UNITEDHEALTH
The main advantage of trading using opposite GE Aerospace and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace 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.| GE Aerospace vs. Illinois Tool Works | ||
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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