Correlation Between UnitedHealth Group and Gamehost
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Gamehost 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 Gamehost 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 Gamehost, you can compare the effects of market volatilities on UnitedHealth Group and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Gamehost.
Diversification Opportunities for UnitedHealth Group and Gamehost
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UnitedHealth and Gamehost is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Gamehost go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Gamehost
Assuming the 90 days trading horizon UnitedHealth Group CDR is expected to generate 2.42 times more return on investment than Gamehost. However, UnitedHealth Group is 2.42 times more volatile than Gamehost. It trades about 0.1 of its potential returns per unit of risk. Gamehost is currently generating about 0.17 per unit of risk. If you would invest 2,431 in UnitedHealth Group CDR on October 26, 2024 and sell it today you would earn a total of 84.00 from holding UnitedHealth Group CDR or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group CDR vs. Gamehost
Performance |
| Timeline |
| UnitedHealth Group CDR |
| Gamehost |
UnitedHealth Group and Gamehost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Gamehost
The main advantage of trading using opposite UnitedHealth Group and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.| UnitedHealth Group vs. Constellation Software | UnitedHealth Group vs. Guru Organic Energy | UnitedHealth Group vs. Rocky Mountain Liquor | UnitedHealth Group vs. Leveljump Healthcare Corp |
| Gamehost vs. Medical Facilities | Gamehost vs. Information Services | Gamehost vs. K Bro Linen | Gamehost vs. Richards Packaging Income |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |