Correlation Between UnitedHealth Group and El Puerto
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By analyzing existing cross correlation between UnitedHealth Group Incorporated and El Puerto de, you can compare the effects of market volatilities on UnitedHealth Group and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and El Puerto.
Diversification Opportunities for UnitedHealth Group and El Puerto
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UnitedHealth and LIVEPOL1 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and El Puerto go up and down completely randomly.
Pair Corralation between UnitedHealth Group and El Puerto
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 2.76 times more return on investment than El Puerto. However, UnitedHealth Group is 2.76 times more volatile than El Puerto de. It trades about 0.19 of its potential returns per unit of risk. El Puerto de is currently generating about -0.22 per unit of risk. If you would invest 1,135,997 in UnitedHealth Group Incorporated on September 1, 2024 and sell it today you would earn a total of 107,693 from holding UnitedHealth Group Incorporated or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. El Puerto de
Performance |
| Timeline |
| UnitedHealth Group |
| El Puerto de |
UnitedHealth Group and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and El Puerto
The main advantage of trading using opposite UnitedHealth Group and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| UnitedHealth Group vs. Hoteles City Express | UnitedHealth Group vs. GMxico Transportes SAB | UnitedHealth Group vs. DXC Technology | UnitedHealth Group vs. Lloyds Banking Group |
| El Puerto vs. UnitedHealth Group Incorporated | El Puerto vs. Ross Stores | El Puerto vs. Prudential Financial | El Puerto vs. Samsung Electronics 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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