Correlation Between McEwen Mining and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both McEwen Mining 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 McEwen Mining and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McEwen Mining and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on McEwen Mining 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 McEwen Mining with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of McEwen Mining and UnitedHealth Group.
Diversification Opportunities for McEwen Mining and UnitedHealth Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between McEwen and UnitedHealth is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding McEwen Mining and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and McEwen Mining 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 McEwen Mining 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 has no effect on the direction of McEwen Mining i.e., McEwen Mining and UnitedHealth Group go up and down completely randomly.
Pair Corralation between McEwen Mining and UnitedHealth Group
If you would invest 1,134,600 in UnitedHealth Group Incorporated on August 27, 2024 and sell it today you would earn a total of 77,811 from holding UnitedHealth Group Incorporated or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McEwen Mining vs. UnitedHealth Group Incorporate
Performance |
| Timeline |
| McEwen Mining |
| UnitedHealth Group |
McEwen Mining and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McEwen Mining and UnitedHealth Group
The main advantage of trading using opposite McEwen Mining and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McEwen Mining 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.| McEwen Mining vs. Rio Tinto Group | McEwen Mining vs. Vale SA | McEwen Mining vs. Glencore plc | McEwen Mining vs. Cleveland Cliffs |
| UnitedHealth Group vs. The Select Sector | UnitedHealth Group vs. Promotora y Operadora | UnitedHealth Group vs. iShares Global Timber | UnitedHealth Group vs. SPDR Series Trust |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |