Correlation Between Queens Road and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Queens Road 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 Queens Road and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Queens Road Capital and UnitedHealth Group CDR, you can compare the effects of market volatilities on Queens Road 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 Queens Road with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Queens Road and UnitedHealth Group.
Diversification Opportunities for Queens Road and UnitedHealth Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Queens and UnitedHealth is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Capital 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 Queens Road 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 Queens Road Capital 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 Queens Road i.e., Queens Road and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Queens Road and UnitedHealth Group
Assuming the 90 days trading horizon Queens Road Capital is expected to generate 0.65 times more return on investment than UnitedHealth Group. However, Queens Road Capital is 1.54 times less risky than UnitedHealth Group. It trades about -0.28 of its potential returns per unit of risk. UnitedHealth Group CDR is currently generating about -0.29 per unit of risk. If you would invest 78.00 in Queens Road Capital on September 22, 2024 and sell it today you would lose (8.00) from holding Queens Road Capital or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Queens Road Capital vs. UnitedHealth Group CDR
Performance |
| Timeline |
| Queens Road Capital |
| UnitedHealth Group CDR |
Queens Road and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Queens Road and UnitedHealth Group
The main advantage of trading using opposite Queens Road and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Queens Road 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.| Queens Road vs. Berkshire Hathaway CDR | Queens Road vs. E L Financial Corp | Queens Road vs. E L Financial 3 | Queens Road vs. Molson Coors Canada |
| UnitedHealth Group vs. Data Communications Management | UnitedHealth Group vs. SalesforceCom CDR | UnitedHealth Group vs. Broadcom | UnitedHealth Group vs. Queens Road Capital |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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