Correlation Between UnitedHealth Group and IKang Healthcare
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and IKang Healthcare 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 IKang Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UnitedHealth Group Incorporated and IKang Healthcare Group, you can compare the effects of market volatilities on UnitedHealth Group and IKang Healthcare 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 IKang Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and IKang Healthcare.
Diversification Opportunities for UnitedHealth Group and IKang Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UnitedHealth and IKang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and IKang Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKang Healthcare 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 Incorporated are associated (or correlated) with IKang Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKang Healthcare has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and IKang Healthcare go up and down completely randomly.
Pair Corralation between UnitedHealth Group and IKang Healthcare
If you would invest 49,331 in UnitedHealth Group Incorporated on January 24, 2024 and sell it today you would lose (208.00) from holding UnitedHealth Group Incorporated or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. IKang Healthcare Group
Performance |
| Timeline |
| UnitedHealth Group |
| IKang Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UnitedHealth Group and IKang Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and IKang Healthcare
The main advantage of trading using opposite UnitedHealth Group and IKang Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, IKang Healthcare 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 IKang Healthcare will offset losses from the drop in IKang Healthcare's long position.| UnitedHealth Group vs. Cigna Corp | UnitedHealth Group vs. Humana Inc | UnitedHealth Group vs. Elevance Health | UnitedHealth Group vs. Centene Corp |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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