Correlation Between UnitedHealth Group and Ocumetics Technology

Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Ocumetics Technology 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 UnitedHealth Group and Ocumetics Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UnitedHealth Group CDR and Ocumetics Technology Corp, you can compare the effects of market volatilities on UnitedHealth Group and Ocumetics Technology 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 UnitedHealth Group with a short position of Ocumetics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Ocumetics Technology.

Diversification Opportunities for UnitedHealth Group and Ocumetics Technology

-0.93

Correlation Coefficient

UnitedHealth Group  Ocumetics Technology

Pay attention - limited upside

The 3 months correlation between UnitedHealth and Ocumetics is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology Corp and UnitedHealth Group 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 UnitedHealth Group CDR are associated (or correlated) with Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Ocumetics Technology go up and down completely randomly.

Pair Corralation between UnitedHealth Group and Ocumetics Technology

Assuming the 90 days trading horizon UnitedHealth Group CDR is expected to under-perform the Ocumetics Technology. In addition to that, UnitedHealth Group is 1.19 times more volatile than Ocumetics Technology Corp. It trades about -0.15 of its total potential returns per unit of risk. Ocumetics Technology Corp is currently generating about 0.2 per unit of volatility. If you would invest  28.00  in Ocumetics Technology Corp on April 25, 2025 and sell it today you would earn a total of  11.00  from holding Ocumetics Technology Corp or generate 39.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

UnitedHealth Group CDR  vs.  Ocumetics Technology Corp

UnitedHealth Group CDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days UnitedHealth Group CDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Ocumetics Technology Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Ocumetics Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UnitedHealth Group and Ocumetics Technology

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

The idea behind UnitedHealth Group CDR and Ocumetics Technology Corp 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.