Correlation Between Stepan and UNITEDHEALTH
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Stepan 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 Stepan with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and UNITEDHEALTH.
Diversification Opportunities for Stepan and UNITEDHEALTH
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stepan and UNITEDHEALTH is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company 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 Stepan 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 Stepan Company 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 Stepan i.e., Stepan and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Stepan and UNITEDHEALTH
Considering the 90-day investment horizon Stepan Company is expected to under-perform the UNITEDHEALTH. In addition to that, Stepan is 3.22 times more volatile than UNITEDHEALTH GROUP INC. It trades about -0.03 of its total potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about -0.06 per unit of volatility. If you would invest 9,915 in UNITEDHEALTH GROUP INC on September 18, 2024 and sell it today you would lose (218.00) from holding UNITEDHEALTH GROUP INC or give up 2.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Stepan Company vs. UNITEDHEALTH GROUP INC
Performance |
Timeline |
Stepan Company |
UNITEDHEALTH GROUP INC |
Stepan and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stepan and UNITEDHEALTH
The main advantage of trading using opposite Stepan and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan 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.Stepan vs. LyondellBasell Industries NV | Stepan vs. Cabot | Stepan vs. Westlake Chemical | Stepan vs. Air Products and |
UNITEDHEALTH vs. Stepan Company | UNITEDHEALTH vs. Sun Life Financial | UNITEDHEALTH vs. Axalta Coating Systems | UNITEDHEALTH vs. NL Industries |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |