Correlation Between UnitedHealth Group and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and STAG Industrial, 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 STAG Industrial, 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 STAG Industrial,, you can compare the effects of market volatilities on UnitedHealth Group and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and STAG Industrial,.
Diversification Opportunities for UnitedHealth Group and STAG Industrial,
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UnitedHealth and STAG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and STAG Industrial, go up and down completely randomly.
Pair Corralation between UnitedHealth Group and STAG Industrial,
Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 1.12 times more return on investment than STAG Industrial,. However, UnitedHealth Group is 1.12 times more volatile than STAG Industrial,. It trades about 0.04 of its potential returns per unit of risk. STAG Industrial, is currently generating about 0.03 per unit of risk. If you would invest 4,448 in UnitedHealth Group Incorporated on November 1, 2024 and sell it today you would earn a total of 62.00 from holding UnitedHealth Group Incorporated or generate 1.39% 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. STAG Industrial,
Performance |
| Timeline |
| UnitedHealth Group |
| STAG Industrial, |
UnitedHealth Group and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and STAG Industrial,
The main advantage of trading using opposite UnitedHealth Group and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| UnitedHealth Group vs. Cigna | UnitedHealth Group vs. Odontoprev SA | UnitedHealth Group vs. Qualicorp Consultoria e | UnitedHealth Group vs. Marfrig Global Foods |
| STAG Industrial, vs. UnitedHealth Group Incorporated | STAG Industrial, vs. Healthpeak Properties | STAG Industrial, vs. TAL Education Group | STAG Industrial, vs. Pure Storage, |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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