Correlation Between United Airlines and CLOVER HEALTH
Can any of the company-specific risk be diversified away by investing in both United Airlines and CLOVER HEALTH 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 United Airlines and CLOVER HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and CLOVER HEALTH INV, you can compare the effects of market volatilities on United Airlines and CLOVER HEALTH 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 United Airlines with a short position of CLOVER HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and CLOVER HEALTH.
Diversification Opportunities for United Airlines and CLOVER HEALTH
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and CLOVER is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and CLOVER HEALTH INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLOVER HEALTH INV and United Airlines 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 United Airlines Holdings are associated (or correlated) with CLOVER HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLOVER HEALTH INV has no effect on the direction of United Airlines i.e., United Airlines and CLOVER HEALTH go up and down completely randomly.
Pair Corralation between United Airlines and CLOVER HEALTH
Assuming the 90 days trading horizon United Airlines Holdings is expected to under-perform the CLOVER HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, United Airlines Holdings is 1.1 times less risky than CLOVER HEALTH. The stock trades about -0.37 of its potential returns per unit of risk. The CLOVER HEALTH INV is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 416.00 in CLOVER HEALTH INV on December 12, 2024 and sell it today you would lose (99.00) from holding CLOVER HEALTH INV or give up 23.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. CLOVER HEALTH INV
Performance |
| Timeline |
| United Airlines Holdings |
| CLOVER HEALTH INV |
United Airlines and CLOVER HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and CLOVER HEALTH
The main advantage of trading using opposite United Airlines and CLOVER HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines position performs unexpectedly, CLOVER HEALTH 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 CLOVER HEALTH will offset losses from the drop in CLOVER HEALTH's long position.| United Airlines vs. Grupo Carso SAB | ||
| United Airlines vs. Geely Automobile Holdings | ||
| United Airlines vs. Bio Techne Corp | ||
| United Airlines vs. Direct Line Insurance |
| CLOVER HEALTH vs. DAIDO METAL TD | ||
| CLOVER HEALTH vs. Jacquet Metal Service | ||
| CLOVER HEALTH vs. AEON STORES | ||
| CLOVER HEALTH vs. Fast Retailing Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |