Correlation Between FibraHotel and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both FibraHotel and UnitedHealth Group 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 FibraHotel and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibraHotel and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on FibraHotel and UnitedHealth Group 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 FibraHotel with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibraHotel and UnitedHealth Group.
Diversification Opportunities for FibraHotel and UnitedHealth Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FibraHotel and UnitedHealth is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding FibraHotel and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and FibraHotel 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 FibraHotel are associated (or correlated) with UnitedHealth Group. 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 has no effect on the direction of FibraHotel i.e., FibraHotel and UnitedHealth Group go up and down completely randomly.
Pair Corralation between FibraHotel and UnitedHealth Group
Assuming the 90 days trading horizon FibraHotel is expected to generate 0.64 times more return on investment than UnitedHealth Group. However, FibraHotel is 1.55 times less risky than UnitedHealth Group. It trades about 0.0 of its potential returns per unit of risk. UnitedHealth Group Incorporated is currently generating about -0.24 per unit of risk. If you would invest 910.00 in FibraHotel on September 14, 2024 and sell it today you would lose (2.00) from holding FibraHotel or give up 0.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
FibraHotel vs. UnitedHealth Group Incorporate
Performance |
Timeline |
FibraHotel |
UnitedHealth Group |
FibraHotel and UnitedHealth Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FibraHotel and UnitedHealth Group
The main advantage of trading using opposite FibraHotel and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibraHotel position performs unexpectedly, UnitedHealth Group 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 Group will offset losses from the drop in UnitedHealth Group's long position.FibraHotel vs. DXC Technology | FibraHotel vs. Micron Technology | FibraHotel vs. GMxico Transportes SAB | FibraHotel vs. Genworth Financial |
UnitedHealth Group vs. The Select Sector | UnitedHealth Group vs. Promotora y Operadora | UnitedHealth Group vs. iShares Global Timber | UnitedHealth Group vs. SPDR Series Trust |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Commodity Directory Find actively traded commodities issued by global exchanges |