Correlation Between United Utilities and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both United Utilities and MyHealthChecked Plc 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 United Utilities and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Utilities Group and MyHealthChecked Plc, you can compare the effects of market volatilities on United Utilities and MyHealthChecked Plc 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 United Utilities with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Utilities and MyHealthChecked Plc.
Diversification Opportunities for United Utilities and MyHealthChecked Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and MyHealthChecked is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Utilities Group and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and United Utilities 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 United Utilities Group are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of United Utilities i.e., United Utilities and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between United Utilities and MyHealthChecked Plc
Assuming the 90 days trading horizon United Utilities Group is expected to generate 0.54 times more return on investment than MyHealthChecked Plc. However, United Utilities Group is 1.86 times less risky than MyHealthChecked Plc. It trades about 0.3 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.09 per unit of risk. If you would invest 102,663 in United Utilities Group on August 31, 2024 and sell it today you would earn a total of 10,287 from holding United Utilities Group or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Utilities Group vs. MyHealthChecked Plc
Performance |
| Timeline |
| United Utilities |
| MyHealthChecked Plc |
United Utilities and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Utilities and MyHealthChecked Plc
The main advantage of trading using opposite United Utilities and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Utilities position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| United Utilities vs. MyHealthChecked Plc | United Utilities vs. PureTech Health plc | United Utilities vs. Abingdon Health Plc | United Utilities vs. Home Depot |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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