Correlation Between IKang Healthcare and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both IKang Healthcare 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 IKang Healthcare and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IKang Healthcare Group and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on IKang Healthcare 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 IKang Healthcare with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKang Healthcare and UnitedHealth Group.
Diversification Opportunities for IKang Healthcare and UnitedHealth Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IKang and UnitedHealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IKang Healthcare Group and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and IKang Healthcare 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 IKang Healthcare Group 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 IKang Healthcare i.e., IKang Healthcare and UnitedHealth Group go up and down completely randomly.
Pair Corralation between IKang Healthcare and UnitedHealth Group
If you would invest (100.00) in IKang Healthcare Group on January 26, 2024 and sell it today you would earn a total of 100.00 from holding IKang Healthcare Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
IKang Healthcare Group vs. UnitedHealth Group Incorporate
Performance |
Timeline |
IKang Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UnitedHealth Group |
IKang Healthcare and UnitedHealth Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IKang Healthcare and UnitedHealth Group
The main advantage of trading using opposite IKang Healthcare and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKang Healthcare 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.IKang Healthcare vs. Nike Inc | IKang Healthcare vs. Steven Madden | IKang Healthcare vs. Chester Mining | IKang Healthcare vs. Vishay Intertechnology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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