Correlation Between UNITEDHEALTH and Snap On
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNITEDHEALTH GROUP INC and Snap On, you can compare the effects of market volatilities on UNITEDHEALTH and Snap On 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 with a short position of Snap On. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITEDHEALTH and Snap On.
Diversification Opportunities for UNITEDHEALTH and Snap On
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNITEDHEALTH and Snap is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding UNITEDHEALTH GROUP INC and Snap On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap On and UNITEDHEALTH 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 INC are associated (or correlated) with Snap On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap On has no effect on the direction of UNITEDHEALTH i.e., UNITEDHEALTH and Snap On go up and down completely randomly.
Pair Corralation between UNITEDHEALTH and Snap On
Assuming the 90 days trading horizon UNITEDHEALTH GROUP INC is expected to under-perform the Snap On. But the bond apears to be less risky and, when comparing its historical volatility, UNITEDHEALTH GROUP INC is 4.09 times less risky than Snap On. The bond trades about -0.15 of its potential returns per unit of risk. The Snap On is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 32,463 in Snap On on October 25, 2024 and sell it today you would earn a total of 2,602 from holding Snap On or generate 8.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
UNITEDHEALTH GROUP INC vs. Snap On
Performance |
Timeline |
UNITEDHEALTH GROUP INC |
Snap On |
UNITEDHEALTH and Snap On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNITEDHEALTH and Snap On
The main advantage of trading using opposite UNITEDHEALTH and Snap On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITEDHEALTH position performs unexpectedly, Snap On 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 Snap On will offset losses from the drop in Snap On's long position.UNITEDHEALTH vs. NL Industries | UNITEDHEALTH vs. Ecovyst | UNITEDHEALTH vs. Balchem | UNITEDHEALTH vs. Bilibili |
Snap On vs. Lincoln Electric Holdings | Snap On vs. Timken Company | Snap On vs. Kennametal | Snap On vs. Toro Co |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |