Correlation Between UnitedHealth Group and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Bragg Gaming 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 Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UnitedHealth Group CDR and Bragg Gaming Group, you can compare the effects of market volatilities on UnitedHealth Group and Bragg Gaming 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 Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Bragg Gaming.
Diversification Opportunities for UnitedHealth Group and Bragg Gaming
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UnitedHealth and Bragg is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group 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 CDR are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Bragg Gaming go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Bragg Gaming
Assuming the 90 days trading horizon UnitedHealth Group CDR is expected to under-perform the Bragg Gaming. But the stock apears to be less risky and, when comparing its historical volatility, UnitedHealth Group CDR is 3.31 times less risky than Bragg Gaming. The stock trades about -0.25 of its potential returns per unit of risk. The Bragg Gaming Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Bragg Gaming Group on September 13, 2024 and sell it today you would lose (104.00) from holding Bragg Gaming Group or give up 16.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group CDR vs. Bragg Gaming Group
Performance |
| Timeline |
| UnitedHealth Group CDR |
| Bragg Gaming Group |
UnitedHealth Group and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Bragg Gaming
The main advantage of trading using opposite UnitedHealth Group and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Bragg Gaming 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 Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.| UnitedHealth Group vs. Extendicare | UnitedHealth Group vs. Sienna Senior Living | UnitedHealth Group vs. Rogers Sugar | UnitedHealth Group vs. Chemtrade Logistics Income |
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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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