Correlation Between UnitedHealth Group and Banco Actinver

Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Banco Actinver 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 Banco Actinver 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 Banco Actinver SA, you can compare the effects of market volatilities on UnitedHealth Group and Banco Actinver 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 Banco Actinver. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Banco Actinver.

Diversification Opportunities for UnitedHealth Group and Banco Actinver

0.23

Correlation Coefficient

UnitedHealth Group  Banco Actinver

Modest diversification

The 3 months correlation between UnitedHealth and Banco is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Banco Actinver SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Actinver SA 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 Banco Actinver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Actinver SA has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Banco Actinver go up and down completely randomly.

Pair Corralation between UnitedHealth Group and Banco Actinver

Assuming the 90 days trading horizon UnitedHealth Group Incorporated is expected to generate 1.2 times more return on investment than Banco Actinver. However, UnitedHealth Group is 1.2 times more volatile than Banco Actinver SA. It trades about -0.06 of its potential returns per unit of risk. Banco Actinver SA is currently generating about -0.13 per unit of risk. If you would invest  1,202,525  in UnitedHealth Group Incorporated on September 13, 2024 and sell it today you would lose (127,592) from holding UnitedHealth Group Incorporated or give up 10.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

UnitedHealth Group Incorporate  vs.  Banco Actinver SA

UnitedHealth Group

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Banco Actinver SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banco Actinver SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with UnitedHealth Group and Banco Actinver

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

The idea behind UnitedHealth Group Incorporated and Banco Actinver SA 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.