Correlation Between Universal Health and Unity Software

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

By analyzing existing cross correlation between Universal Health Services, and Unity Software, you can compare the effects of market volatilities on Universal Health and Unity Software 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 Universal Health with a short position of Unity Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Health and Unity Software.

Diversification Opportunities for Universal Health and Unity Software

0.37

Correlation Coefficient

Universal Health  Unity Software

Weak diversification

The 3 months correlation between Universal and Unity is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Services, and Unity Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unity Software and Universal Health 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 Universal Health Services, are associated (or correlated) with Unity Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unity Software has no effect on the direction of Universal Health i.e., Universal Health and Unity Software go up and down completely randomly.

Pair Corralation between Universal Health and Unity Software

Assuming the 90 days trading horizon Universal Health is expected to generate 25.88 times less return on investment than Unity Software. But when comparing it to its historical volatility, Universal Health Services, is 2.22 times less risky than Unity Software. It trades about 0.01 of its potential returns per unit of risk. Unity Software is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  511.00  in Unity Software on July 6, 2025 and sell it today you would earn a total of  500.00  from holding Unity Software or generate 97.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Universal Health Services,  vs.  Unity Software

Universal Health Ser

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Health Services, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, Universal Health may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Unity Software

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Unity Software are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Unity Software sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Universal Health and Unity Software

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

The idea behind Universal Health Services, and Unity Software 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.