Correlation Between UnitedHealth Group and Apartment Investment
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Apartment Investment 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 Apartment Investment 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 Apartment Investment and, you can compare the effects of market volatilities on UnitedHealth Group and Apartment Investment 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 Apartment Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Apartment Investment.
Diversification Opportunities for UnitedHealth Group and Apartment Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UnitedHealth and Apartment is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Apartment Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apartment Investment and 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 Apartment Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apartment Investment and has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Apartment Investment go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Apartment Investment
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to under-perform the Apartment Investment. But the stock apears to be less risky and, when comparing its historical volatility, UnitedHealth Group Incorporated is 1.09 times less risky than Apartment Investment. The stock trades about -0.09 of its potential returns per unit of risk. The Apartment Investment and is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,001 in Apartment Investment and on September 12, 2024 and sell it today you would earn a total of 294.00 from holding Apartment Investment and or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. Apartment Investment and
Performance |
| Timeline |
| UnitedHealth Group |
| Apartment Investment and |
UnitedHealth Group and Apartment Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Apartment Investment
The main advantage of trading using opposite UnitedHealth Group and Apartment Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Apartment Investment 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 Apartment Investment will offset losses from the drop in Apartment Investment's long position.| UnitedHealth Group vs. Odontoprev SA | UnitedHealth Group vs. Qualicorp Consultoria e | UnitedHealth Group vs. Fundo Investimento Imobiliario | UnitedHealth Group vs. LESTE FDO INV |
| Apartment Investment vs. Zoom Video Communications | Apartment Investment vs. United Rentals | Apartment Investment vs. Verizon Communications | Apartment Investment vs. Nordon Indstrias Metalrgicas |
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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