Correlation Between UNITEDHEALTH and Dine Brands
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By analyzing existing cross correlation between UNITEDHEALTH GROUP INC and Dine Brands Global, you can compare the effects of market volatilities on UNITEDHEALTH and Dine Brands 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 Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITEDHEALTH and Dine Brands.
Diversification Opportunities for UNITEDHEALTH and Dine Brands
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNITEDHEALTH and Dine is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding UNITEDHEALTH GROUP INC and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global 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 Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of UNITEDHEALTH i.e., UNITEDHEALTH and Dine Brands go up and down completely randomly.
Pair Corralation between UNITEDHEALTH and Dine Brands
Assuming the 90 days trading horizon UNITEDHEALTH GROUP INC is expected to generate 4.66 times more return on investment than Dine Brands. However, UNITEDHEALTH is 4.66 times more volatile than Dine Brands Global. It trades about 0.16 of its potential returns per unit of risk. Dine Brands Global is currently generating about -0.07 per unit of risk. If you would invest 6,434 in UNITEDHEALTH GROUP INC on October 8, 2024 and sell it today you would earn a total of 1,528 from holding UNITEDHEALTH GROUP INC or generate 23.75% 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. Dine Brands Global
Performance |
Timeline |
UNITEDHEALTH GROUP INC |
Dine Brands Global |
UNITEDHEALTH and Dine Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNITEDHEALTH and Dine Brands
The main advantage of trading using opposite UNITEDHEALTH and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITEDHEALTH position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' long position.UNITEDHEALTH vs. Vita Coco | UNITEDHEALTH vs. Constellation Brands Class | UNITEDHEALTH vs. Perella Weinberg Partners | UNITEDHEALTH vs. Compania Cervecerias Unidas |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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