Correlation Between Mink Therapeutics and UNITEDHEALTH

Can any of the company-specific risk be diversified away by investing in both Mink Therapeutics and UNITEDHEALTH 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 Mink Therapeutics and UNITEDHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mink Therapeutics and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Mink Therapeutics 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 Mink Therapeutics with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mink Therapeutics and UNITEDHEALTH.

Diversification Opportunities for Mink Therapeutics and UNITEDHEALTH

0.65

Correlation Coefficient

Mink Therapeutics  UNITEDHEALTH

Poor diversification

The 3 months correlation between Mink and UNITEDHEALTH is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mink Therapeutics 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 Mink Therapeutics 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 Mink Therapeutics 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 Mink Therapeutics i.e., Mink Therapeutics and UNITEDHEALTH go up and down completely randomly.

Pair Corralation between Mink Therapeutics and UNITEDHEALTH

Given the investment horizon of 90 days Mink Therapeutics is expected to under-perform the UNITEDHEALTH. In addition to that, Mink Therapeutics is 31.9 times more volatile than UNITEDHEALTH GROUP INC. It trades about -0.14 of its total potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.02 per unit of volatility. If you would invest  9,836  in UNITEDHEALTH GROUP INC on September 21, 2024 and sell it today you would earn a total of  8.00  from holding UNITEDHEALTH GROUP INC or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.73%
Values	Daily Returns

Mink Therapeutics  vs.  UNITEDHEALTH GROUP INC

Mink Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mink Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

UNITEDHEALTH GROUP INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNITEDHEALTH GROUP INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, UNITEDHEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mink Therapeutics and UNITEDHEALTH

The main advantage of trading using opposite Mink Therapeutics and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mink Therapeutics 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.

The idea behind Mink Therapeutics and UNITEDHEALTH GROUP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.