Correlation Between Bristol-Myers Squibb and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Bristol-Myers Squibb 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 Bristol-Myers Squibb and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristol Myers Squibb and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on Bristol-Myers Squibb 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 Bristol-Myers Squibb with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristol-Myers Squibb and UnitedHealth Group.
Diversification Opportunities for Bristol-Myers Squibb and UnitedHealth Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bristol-Myers and UnitedHealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bristol Myers Squibb and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and Bristol-Myers Squibb 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 Bristol Myers Squibb 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 Bristol-Myers Squibb i.e., Bristol-Myers Squibb and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Bristol-Myers Squibb and UnitedHealth Group
If you would invest 45,972 in UnitedHealth Group Incorporated on February 9, 2024 and sell it today you would earn a total of 4,688 from holding UnitedHealth Group Incorporated or generate 10.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bristol Myers Squibb vs. UnitedHealth Group Incorporate
Performance |
Timeline |
Bristol Myers Squibb |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UnitedHealth Group |
Bristol-Myers Squibb and UnitedHealth Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bristol-Myers Squibb and UnitedHealth Group
The main advantage of trading using opposite Bristol-Myers Squibb and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristol-Myers Squibb 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.Bristol-Myers Squibb vs. Novartis AG | Bristol-Myers Squibb vs. Bayer Aktiengesellschaft | Bristol-Myers Squibb vs. Astellas Pharma | Bristol-Myers Squibb vs. Roche Holding AG |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |