Correlation Between UnitedHealth Group and Vaneck Vectors
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Vaneck Vectors 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 Vaneck Vectors 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 Vaneck Vectors Amt free, you can compare the effects of market volatilities on UnitedHealth Group and Vaneck Vectors 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 Vaneck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Vaneck Vectors.
Diversification Opportunities for UnitedHealth Group and Vaneck Vectors
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UnitedHealth and Vaneck is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Vaneck Vectors Amt free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaneck Vectors Amt 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 Vaneck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaneck Vectors Amt has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Vaneck Vectors go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Vaneck Vectors
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 55.52 times more return on investment than Vaneck Vectors. However, UnitedHealth Group is 55.52 times more volatile than Vaneck Vectors Amt free. It trades about 0.03 of its potential returns per unit of risk. Vaneck Vectors Amt free is currently generating about 0.22 per unit of risk. If you would invest 1,036,600 in UnitedHealth Group Incorporated on September 3, 2024 and sell it today you would earn a total of 207,090 from holding UnitedHealth Group Incorporated or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. Vaneck Vectors Amt free
Performance |
| Timeline |
| UnitedHealth Group |
| Vaneck Vectors Amt |
UnitedHealth Group and Vaneck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Vaneck Vectors
The main advantage of trading using opposite UnitedHealth Group and Vaneck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Vaneck Vectors 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 Vaneck Vectors will offset losses from the drop in Vaneck Vectors' long position.| UnitedHealth Group vs. The Select Sector | UnitedHealth Group vs. Promotora y Operadora | UnitedHealth Group vs. SPDR Series Trust | UnitedHealth Group vs. Vanguard World |
| Vaneck Vectors vs. Vanguard Index Funds | Vaneck Vectors vs. Vanguard Index Funds | Vaneck Vectors vs. Vanguard STAR Funds | Vaneck Vectors vs. SPDR SP 500 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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