Correlation Between United Airlines and Globus Medical,

Can any of the company-specific risk be diversified away by investing in both United Airlines and Globus Medical, 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 United Airlines and Globus Medical, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between United Airlines Holdings and Globus Medical,, you can compare the effects of market volatilities on United Airlines and Globus Medical, 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 United Airlines with a short position of Globus Medical,. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Globus Medical,.

Diversification Opportunities for United Airlines and Globus Medical,

-0.64

Correlation Coefficient

United Airlines  Globus Medical,

Excellent diversification

The 3 months correlation between United and Globus is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Globus Medical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical, and United Airlines 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 United Airlines Holdings are associated (or correlated) with Globus Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical, has no effect on the direction of United Airlines i.e., United Airlines and Globus Medical, go up and down completely randomly.

Pair Corralation between United Airlines and Globus Medical,

Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 0.91 times more return on investment than Globus Medical,. However, United Airlines Holdings is 1.1 times less risky than Globus Medical,. It trades about 0.13 of its potential returns per unit of risk. Globus Medical, is currently generating about -0.13 per unit of risk. If you would invest  19,367  in United Airlines Holdings on April 25, 2025 and sell it today you would earn a total of  5,533  from holding United Airlines Holdings or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

United Airlines Holdings  vs.  Globus Medical,

United Airlines Holdings

Risk-Adjusted Performance

OK

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

Globus Medical,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Globus Medical, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with United Airlines and Globus Medical,

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

The idea behind United Airlines Holdings and Globus Medical, 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.

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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.