Correlation Between UnitedHealth Group and METISA Metalrgica
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and METISA Metalrgica 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 METISA Metalrgica 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 METISA Metalrgica Timboense, you can compare the effects of market volatilities on UnitedHealth Group and METISA Metalrgica 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 METISA Metalrgica. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and METISA Metalrgica.
Diversification Opportunities for UnitedHealth Group and METISA Metalrgica
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UnitedHealth and METISA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and METISA Metalrgica Timboense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METISA Metalrgica 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 METISA Metalrgica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METISA Metalrgica has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and METISA Metalrgica go up and down completely randomly.
Pair Corralation between UnitedHealth Group and METISA Metalrgica
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 0.68 times more return on investment than METISA Metalrgica. However, UnitedHealth Group Incorporated is 1.48 times less risky than METISA Metalrgica. It trades about 0.03 of its potential returns per unit of risk. METISA Metalrgica Timboense is currently generating about 0.0 per unit of risk. If you would invest 3,936 in UnitedHealth Group Incorporated on August 26, 2024 and sell it today you would earn a total of 976.00 from holding UnitedHealth Group Incorporated or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. METISA Metalrgica Timboense
Performance |
| Timeline |
| UnitedHealth Group |
| METISA Metalrgica |
UnitedHealth Group and METISA Metalrgica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and METISA Metalrgica
The main advantage of trading using opposite UnitedHealth Group and METISA Metalrgica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, METISA Metalrgica 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 METISA Metalrgica will offset losses from the drop in METISA Metalrgica's long position.| UnitedHealth Group vs. Qualicorp Consultoria e | UnitedHealth Group vs. Fras le SA | UnitedHealth Group vs. Western Digital | UnitedHealth Group vs. Clave Indices De |
| METISA Metalrgica vs. Schulz SA | METISA Metalrgica vs. Fras le SA | METISA Metalrgica vs. PBG SA | METISA Metalrgica vs. Springs Global Participaes |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |