Correlation Between Westrock Coffee and UNITEDHEALTH
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By analyzing existing cross correlation between Westrock Coffee and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Westrock Coffee and UNITEDHEALTH 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 Westrock Coffee with a short position of UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westrock Coffee and UNITEDHEALTH.
Diversification Opportunities for Westrock Coffee and UNITEDHEALTH
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westrock and UNITEDHEALTH is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Westrock Coffee and UNITEDHEALTH GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITEDHEALTH GROUP INC and Westrock Coffee 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 Westrock Coffee are associated (or correlated) with UNITEDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITEDHEALTH GROUP INC has no effect on the direction of Westrock Coffee i.e., Westrock Coffee and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Westrock Coffee and UNITEDHEALTH
Given the investment horizon of 90 days Westrock Coffee is expected to under-perform the UNITEDHEALTH. In addition to that, Westrock Coffee is 3.44 times more volatile than UNITEDHEALTH GROUP INC. It trades about -0.36 of its total potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about -0.2 per unit of volatility. If you would invest 6,568 in UNITEDHEALTH GROUP INC on September 26, 2024 and sell it today you would lose (259.00) from holding UNITEDHEALTH GROUP INC or give up 3.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Westrock Coffee vs. UNITEDHEALTH GROUP INC
Performance |
Timeline |
Westrock Coffee |
UNITEDHEALTH GROUP INC |
Westrock Coffee and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Westrock Coffee and UNITEDHEALTH
The main advantage of trading using opposite Westrock Coffee and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westrock Coffee position performs unexpectedly, UNITEDHEALTH 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 UNITEDHEALTH will offset losses from the drop in UNITEDHEALTH's long position.Westrock Coffee vs. Coffee Holding Co | Westrock Coffee vs. Bridgford Foods | Westrock Coffee vs. John B Sanfilippo | Westrock Coffee vs. Treehouse Foods |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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