Correlation Between UnitedHealth Group and Internacional

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

By analyzing existing cross correlation between UnitedHealth Group Incorporated and Internacional de Cermica, you can compare the effects of market volatilities on UnitedHealth Group and Internacional 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 UnitedHealth Group with a short position of Internacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Internacional.

Diversification Opportunities for UnitedHealth Group and Internacional

0.0

Correlation Coefficient

UnitedHealth Group  Internacional

Pay attention - limited upside

The 3 months correlation between UnitedHealth and Internacional is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Internacional de Cermica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Internacional de Cermica and UnitedHealth Group 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 UnitedHealth Group Incorporated are associated (or correlated) with Internacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Internacional de Cermica has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Internacional go up and down completely randomly.

Pair Corralation between UnitedHealth Group and Internacional

If you would invest  9,600  in Internacional de Cermica on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Internacional de Cermica or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

UnitedHealth Group Incorporate  vs.  Internacional de Cermica

UnitedHealth Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days UnitedHealth Group Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Internacional de Cermica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Internacional de Cermica has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Internacional is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with UnitedHealth Group and Internacional

The main advantage of trading using opposite UnitedHealth Group and Internacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Internacional 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 Internacional will offset losses from the drop in Internacional's long position.

The idea behind UnitedHealth Group Incorporated and Internacional de Cermica 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.