Correlation Between UnitedHealth Group and Thinkific Labs
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Thinkific Labs 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 Thinkific Labs 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 Thinkific Labs, you can compare the effects of market volatilities on UnitedHealth Group and Thinkific Labs 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 Thinkific Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Thinkific Labs.
Diversification Opportunities for UnitedHealth Group and Thinkific Labs
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UnitedHealth and Thinkific is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Thinkific Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkific Labs 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 Thinkific Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkific Labs has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Thinkific Labs go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Thinkific Labs
Assuming the 90 days trading horizon UnitedHealth Group is expected to generate 3.06 times less return on investment than Thinkific Labs. But when comparing it to its historical volatility, UnitedHealth Group CDR is 2.31 times less risky than Thinkific Labs. It trades about 0.04 of its potential returns per unit of risk. Thinkific Labs is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Thinkific Labs on August 31, 2024 and sell it today you would earn a total of 127.00 from holding Thinkific Labs or generate 71.75% 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. Thinkific Labs
Performance |
| Timeline |
| UnitedHealth Group CDR |
| Thinkific Labs |
UnitedHealth Group and Thinkific Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Thinkific Labs
The main advantage of trading using opposite UnitedHealth Group and Thinkific Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Thinkific Labs 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 Thinkific Labs will offset losses from the drop in Thinkific Labs' long position.| UnitedHealth Group vs. iShares Canadian HYBrid | UnitedHealth Group vs. Brompton European Dividend | UnitedHealth Group vs. Solar Alliance Energy | UnitedHealth Group vs. PHN Multi Style All Cap |
| Thinkific Labs vs. Richelieu Hardware | Thinkific Labs vs. Eddy Smart Home | Thinkific Labs vs. HPQ Silicon Resources | Thinkific Labs vs. Champion Gaming Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |