Correlation Between Caterpillar and UNITEDHEALTH
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caterpillar and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and UNITEDHEALTH.
Diversification Opportunities for Caterpillar and UNITEDHEALTH
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caterpillar and UNITEDHEALTH is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar 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 Caterpillar 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 Caterpillar 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 Caterpillar i.e., Caterpillar and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Caterpillar and UNITEDHEALTH
Considering the 90-day investment horizon Caterpillar is expected to generate 2.33 times less return on investment than UNITEDHEALTH. But when comparing it to its historical volatility, Caterpillar is 2.04 times less risky than UNITEDHEALTH. It trades about 0.07 of its potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,949 in UNITEDHEALTH GROUP INC on September 18, 2024 and sell it today you would earn a total of 1,013 from holding UNITEDHEALTH GROUP INC or generate 14.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 93.65% |
Values | Daily Returns |
Caterpillar vs. UNITEDHEALTH GROUP INC
Performance |
Timeline |
Caterpillar |
UNITEDHEALTH GROUP INC |
Caterpillar and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caterpillar and UNITEDHEALTH
The main advantage of trading using opposite Caterpillar and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar 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.Caterpillar vs. Aquagold International | Caterpillar vs. Thrivent High Yield | Caterpillar vs. Morningstar Unconstrained Allocation | Caterpillar vs. Via Renewables |
UNITEDHEALTH vs. Ross Stores | UNITEDHEALTH vs. American Eagle Outfitters | UNITEDHEALTH vs. Boot Barn Holdings | UNITEDHEALTH vs. PVH Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |