Correlation Between Nova Leap and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Nova Leap 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 Nova Leap and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Leap Health and UnitedHealth Group CDR, you can compare the effects of market volatilities on Nova Leap 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 Nova Leap with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Leap and UnitedHealth Group.
Diversification Opportunities for Nova Leap and UnitedHealth Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nova and UnitedHealth is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nova Leap Health 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 Nova Leap 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 Nova Leap Health 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 Nova Leap i.e., Nova Leap and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Nova Leap and UnitedHealth Group
Assuming the 90 days horizon Nova Leap Health is expected to under-perform the UnitedHealth Group. In addition to that, Nova Leap is 1.75 times more volatile than UnitedHealth Group CDR. It trades about -0.27 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 28, 2024 and sell it today you would earn a total of 186.00 from holding UnitedHealth Group CDR or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nova Leap Health vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Nova Leap Health |
| UnitedHealth Group CDR |
Nova Leap and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Leap and UnitedHealth Group
The main advantage of trading using opposite Nova Leap and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Leap 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.| Nova Leap vs. Extendicare | Nova Leap vs. Sienna Senior Living | Nova Leap vs. Rogers Sugar | Nova Leap vs. Chemtrade Logistics Income |
| UnitedHealth Group vs. Boat Rocker Media | UnitedHealth Group vs. Profound Medical Corp | UnitedHealth Group vs. Bip Investment Corp | UnitedHealth Group vs. Canaf Investments |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |