Correlation Between UNITEDHEALTH and Hf Foods

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

By analyzing existing cross correlation between UNITEDHEALTH GROUP INC and Hf Foods Group, you can compare the effects of market volatilities on UNITEDHEALTH and Hf Foods 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 Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITEDHEALTH and Hf Foods.

Diversification Opportunities for UNITEDHEALTH and Hf Foods

-0.3

Correlation Coefficient

UNITEDHEALTH  Hf Foods

Very good diversification

The 3 months correlation between UNITEDHEALTH and HFFG is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding UNITEDHEALTH GROUP INC and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods Group 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 Hf Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hf Foods Group has no effect on the direction of UNITEDHEALTH i.e., UNITEDHEALTH and Hf Foods go up and down completely randomly.

Pair Corralation between UNITEDHEALTH and Hf Foods

Assuming the 90 days trading horizon UNITEDHEALTH GROUP INC is expected to under-perform the Hf Foods. But the bond apears to be less risky and, when comparing its historical volatility, UNITEDHEALTH GROUP INC is 4.4 times less risky than Hf Foods. The bond trades about -0.22 of its potential returns per unit of risk. The Hf Foods Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  341.00  in Hf Foods Group on September 22, 2024 and sell it today you would earn a total of  5.00  from holding Hf Foods Group or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UNITEDHEALTH GROUP INC  vs.  Hf Foods Group

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 latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for UNITEDHEALTH GROUP INC investors.

Hf Foods Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hf Foods Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Hf Foods is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with UNITEDHEALTH and Hf Foods

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

The idea behind UNITEDHEALTH GROUP INC and Hf Foods Group 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.