Correlation Between Benefytt Technologies and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Benefytt Technologies and UnitedHealth Group 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 Benefytt Technologies and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benefytt Technologies and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on Benefytt Technologies and UnitedHealth Group 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 Benefytt Technologies with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benefytt Technologies and UnitedHealth Group.
Diversification Opportunities for Benefytt Technologies and UnitedHealth Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benefytt and UnitedHealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benefytt Technologies and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and Benefytt Technologies 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 Benefytt Technologies are associated (or correlated) with UnitedHealth Group. 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 has no effect on the direction of Benefytt Technologies i.e., Benefytt Technologies and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Benefytt Technologies and UnitedHealth Group
If you would invest (100.00) in Benefytt Technologies on December 29, 2023 and sell it today you would earn a total of 100.00 from holding Benefytt Technologies or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Benefytt Technologies vs. UnitedHealth Group Incorporate
Performance |
Timeline |
Benefytt Technologies |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
UnitedHealth Group |
Benefytt Technologies and UnitedHealth Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Benefytt Technologies and UnitedHealth Group
The main advantage of trading using opposite Benefytt Technologies and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benefytt Technologies position performs unexpectedly, UnitedHealth Group 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 Group will offset losses from the drop in UnitedHealth Group's long position.Benefytt Technologies vs. Marie Brizard Wine | Benefytt Technologies vs. Cedar Realty Trust | Benefytt Technologies vs. Duckhorn Portfolio | Benefytt Technologies vs. Nascent Wine |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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