Correlation Between Walmart and UNITEDHEALTH
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By analyzing existing cross correlation between Walmart and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Walmart and UNITEDHEALTH 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 Walmart with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and UNITEDHEALTH.
Diversification Opportunities for Walmart and UNITEDHEALTH
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walmart and UNITEDHEALTH is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and UNITEDHEALTH GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITEDHEALTH GROUP INC and Walmart 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 Walmart are associated (or correlated) with UNITEDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITEDHEALTH GROUP INC has no effect on the direction of Walmart i.e., Walmart and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Walmart and UNITEDHEALTH
Considering the 90-day investment horizon Walmart is expected to generate 21.83 times less return on investment than UNITEDHEALTH. But when comparing it to its historical volatility, Walmart is 61.17 times less risky than UNITEDHEALTH. It trades about 0.18 of its potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,582 in UNITEDHEALTH GROUP INC on September 4, 2024 and sell it today you would earn a total of 1,157 from holding UNITEDHEALTH GROUP INC or generate 15.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.66% |
| Values | Daily Returns |
Walmart vs. UNITEDHEALTH GROUP INC
Performance |
| Timeline |
| Walmart |
| UNITEDHEALTH GROUP INC |
Walmart and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and UNITEDHEALTH
The main advantage of trading using opposite Walmart and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, UNITEDHEALTH 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 UNITEDHEALTH will offset losses from the drop in UNITEDHEALTH's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| UNITEDHEALTH vs. The Travelers Companies | UNITEDHEALTH vs. GE Aerospace | UNITEDHEALTH vs. Walmart | UNITEDHEALTH vs. Pfizer Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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