Correlation Between Haemonetics and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Haemonetics 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 Haemonetics and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on Haemonetics 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 Haemonetics with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and UnitedHealth Group.
Diversification Opportunities for Haemonetics and UnitedHealth Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haemonetics and UnitedHealth is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and Haemonetics 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 Haemonetics 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 Haemonetics i.e., Haemonetics and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Haemonetics and UnitedHealth Group
Considering the 90-day investment horizon Haemonetics is expected to generate 1.35 times more return on investment than UnitedHealth Group. However, Haemonetics is 1.35 times more volatile than UnitedHealth Group Incorporated. It trades about 0.06 of its potential returns per unit of risk. UnitedHealth Group Incorporated is currently generating about 0.01 per unit of risk. If you would invest 5,188 in Haemonetics on January 26, 2024 and sell it today you would earn a total of 3,434 from holding Haemonetics or generate 66.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. UnitedHealth Group Incorporate
Performance |
| Timeline |
| Haemonetics |
| UnitedHealth Group |
Haemonetics and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and UnitedHealth Group
The main advantage of trading using opposite Haemonetics and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics 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.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| UnitedHealth Group vs. Cigna Corp | UnitedHealth Group vs. Humana Inc | UnitedHealth Group vs. Elevance Health | UnitedHealth Group vs. Centene Corp |
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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