Correlation Between IPC MEXICO and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both IPC MEXICO 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 IPC MEXICO and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPC MEXICO and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on IPC MEXICO 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 IPC MEXICO with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and UnitedHealth Group.
Diversification Opportunities for IPC MEXICO and UnitedHealth Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between IPC and UnitedHealth is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and IPC MEXICO 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 IPC MEXICO 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 IPC MEXICO i.e., IPC MEXICO and UnitedHealth Group go up and down completely randomly.
Pair Corralation between IPC MEXICO and UnitedHealth Group
Assuming the 90 days trading horizon IPC MEXICO is expected to generate 1.12 times less return on investment than UnitedHealth Group. But when comparing it to its historical volatility, IPC MEXICO is 2.56 times less risky than UnitedHealth Group. It trades about 0.12 of its potential returns per unit of risk. UnitedHealth Group Incorporated is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 802,082 in UnitedHealth Group Incorporated on February 6, 2024 and sell it today you would earn a total of 27,918 from holding UnitedHealth Group Incorporated or generate 3.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 92.68% |
Values | Daily Returns |
IPC MEXICO vs. UnitedHealth Group Incorporate
Performance |
Timeline |
IPC MEXICO and UnitedHealth Group Volatility Contrast
Predicted Return Density |
Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
UnitedHealth Group Incorporated
Pair trading matchups for UnitedHealth Group
Pair Trading with IPC MEXICO and UnitedHealth Group
The main advantage of trading using opposite IPC MEXICO and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO 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.IPC MEXICO vs. First Majestic Silver | IPC MEXICO vs. UnitedHealth Group Incorporated | IPC MEXICO vs. Grupo Hotelero Santa | IPC MEXICO vs. Grupo Carso SAB |
UnitedHealth Group vs. Air Transport Services | UnitedHealth Group vs. Deutsche Bank Aktiengesellschaft | UnitedHealth Group vs. Southwest Airlines | UnitedHealth Group vs. Grupo Carso SAB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |