Correlation Between UnitedHealth Group and ASGN
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and ASGN 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 ASGN 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 ASGN Inc, you can compare the effects of market volatilities on UnitedHealth Group and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and ASGN.
Diversification Opportunities for UnitedHealth Group and ASGN
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between UnitedHealth and ASGN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and ASGN go up and down completely randomly.
Pair Corralation between UnitedHealth Group and ASGN
Considering the 90-day investment horizon UnitedHealth Group Incorporated is expected to under-perform the ASGN. In addition to that, UnitedHealth Group is 1.18 times more volatile than ASGN Inc. It trades about -0.28 of its total potential returns per unit of risk. ASGN Inc is currently generating about -0.16 per unit of volatility. If you would invest 9,540 in ASGN Inc on September 14, 2024 and sell it today you would lose (703.00) from holding ASGN Inc or give up 7.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. ASGN Inc
Performance |
| Timeline |
| UnitedHealth Group |
| ASGN Inc |
UnitedHealth Group and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and ASGN
The main advantage of trading using opposite UnitedHealth Group and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| UnitedHealth Group vs. Cigna Corp | UnitedHealth Group vs. Humana Inc | UnitedHealth Group vs. Elevance Health | UnitedHealth Group vs. Centene Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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