Correlation Between UnitedHealth Group and DXC Technology
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and DXC Technology 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 DXC Technology 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 DXC Technology, you can compare the effects of market volatilities on UnitedHealth Group and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and DXC Technology.
Diversification Opportunities for UnitedHealth Group and DXC Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UnitedHealth and DXC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and DXC Technology go up and down completely randomly.
Pair Corralation between UnitedHealth Group and DXC Technology
If you would invest 1,054,596 in UnitedHealth Group Incorporated on November 8, 2024 and sell it today you would earn a total of 27,408 from holding UnitedHealth Group Incorporated or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. DXC Technology
Performance |
| Timeline |
| UnitedHealth Group |
| DXC Technology |
UnitedHealth Group and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and DXC Technology
The main advantage of trading using opposite UnitedHealth Group and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| UnitedHealth Group vs. Genworth Financial | UnitedHealth Group vs. Air Transport Services | UnitedHealth Group vs. The Home Depot | UnitedHealth Group vs. Grupo Sports World |
| DXC Technology vs. Applied Materials | DXC Technology vs. Verizon Communications | DXC Technology vs. Deutsche Bank Aktiengesellschaft | DXC Technology vs. GMxico Transportes SAB |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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