Correlation Between MTY Food and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both MTY Food 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 MTY Food and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTY Food Group and UnitedHealth Group CDR, you can compare the effects of market volatilities on MTY Food 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 MTY Food with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and UnitedHealth Group.
Diversification Opportunities for MTY Food and UnitedHealth Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MTY and UnitedHealth is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food 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 MTY Food 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 MTY Food 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 MTY Food i.e., MTY Food and UnitedHealth Group go up and down completely randomly.
Pair Corralation between MTY Food and UnitedHealth Group
Assuming the 90 days trading horizon MTY Food Group is expected to under-perform the UnitedHealth Group. In addition to that, MTY Food is 1.13 times more volatile than UnitedHealth Group CDR. It trades about 0.0 of its total potential returns per unit of risk. UnitedHealth Group CDR is currently generating about 0.0 per unit of volatility. If you would invest 2,536 in UnitedHealth Group CDR on September 14, 2024 and sell it today you would lose (76.00) from holding UnitedHealth Group CDR or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. UnitedHealth Group CDR
Performance |
| Timeline |
| MTY Food Group |
| UnitedHealth Group CDR |
MTY Food and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and UnitedHealth Group
The main advantage of trading using opposite MTY Food and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food 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.| MTY Food vs. Berkshire Hathaway CDR | MTY Food vs. Microsoft Corp CDR | MTY Food vs. Apple Inc CDR | MTY Food vs. Alphabet Inc CDR |
| UnitedHealth Group vs. MTY Food Group | UnitedHealth Group vs. Altair Resources | UnitedHealth Group vs. VIP Entertainment Technologies | UnitedHealth Group vs. NeXGold Mining Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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