Correlation Between UNITEDHEALTH and Fevertree Drinks
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By analyzing existing cross correlation between UNITEDHEALTH GROUP INC and Fevertree Drinks Plc, you can compare the effects of market volatilities on UNITEDHEALTH and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITEDHEALTH and Fevertree Drinks.
Diversification Opportunities for UNITEDHEALTH and Fevertree Drinks
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNITEDHEALTH and Fevertree is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding UNITEDHEALTH GROUP INC and Fevertree Drinks Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks Plc 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks Plc has no effect on the direction of UNITEDHEALTH i.e., UNITEDHEALTH and Fevertree Drinks go up and down completely randomly.
Pair Corralation between UNITEDHEALTH and Fevertree Drinks
Assuming the 90 days trading horizon UNITEDHEALTH GROUP INC is expected to generate 1.32 times more return on investment than Fevertree Drinks. However, UNITEDHEALTH is 1.32 times more volatile than Fevertree Drinks Plc. It trades about 0.02 of its potential returns per unit of risk. Fevertree Drinks Plc is currently generating about -0.21 per unit of risk. If you would invest 6,960 in UNITEDHEALTH GROUP INC on September 25, 2024 and sell it today you would earn a total of 127.00 from holding UNITEDHEALTH GROUP INC or generate 1.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UNITEDHEALTH GROUP INC vs. Fevertree Drinks Plc
Performance |
Timeline |
UNITEDHEALTH GROUP INC |
Fevertree Drinks Plc |
UNITEDHEALTH and Fevertree Drinks Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNITEDHEALTH and Fevertree Drinks
The main advantage of trading using opposite UNITEDHEALTH and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITEDHEALTH position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.UNITEDHEALTH vs. Fevertree Drinks Plc | UNITEDHEALTH vs. Compania Cervecerias Unidas | UNITEDHEALTH vs. PepsiCo | UNITEDHEALTH vs. Westrock Coffee |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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