Correlation Between UnitedHealth Group and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Deutsche Bank 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 UnitedHealth Group and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UnitedHealth Group Incorporated and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on UnitedHealth Group and Deutsche Bank 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 UnitedHealth Group with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Deutsche Bank.
Diversification Opportunities for UnitedHealth Group and Deutsche Bank
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between UnitedHealth and Deutsche is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and UnitedHealth Group 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 UnitedHealth Group Incorporated are associated (or correlated) with Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Deutsche Bank go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Deutsche Bank
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 1.94 times more return on investment than Deutsche Bank. However, UnitedHealth Group is 1.94 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.13 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about -0.07 per unit of risk. If you would invest 1,140,000 in UnitedHealth Group Incorporated on August 24, 2024 and sell it today you would earn a total of 69,371 from holding UnitedHealth Group Incorporated or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| UnitedHealth Group |
| Deutsche Bank Aktien |
UnitedHealth Group and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Deutsche Bank
The main advantage of trading using opposite UnitedHealth Group and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| UnitedHealth Group vs. The Select Sector | UnitedHealth Group vs. Promotora y Operadora | UnitedHealth Group vs. iShares Global Timber | UnitedHealth Group vs. SPDR Series Trust |
| Deutsche Bank vs. Costco Wholesale | Deutsche Bank vs. Micron Technology | Deutsche Bank vs. Grupo Carso SAB | Deutsche Bank vs. Verizon Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |