Correlation Between UnitedHealth Group and Apple CDR
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Apple CDR 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 Apple CDR 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 Apple CDR, you can compare the effects of market volatilities on UnitedHealth Group and Apple CDR 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 Apple CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Apple CDR.
Diversification Opportunities for UnitedHealth Group and Apple CDR
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UnitedHealth and Apple is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Apple CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple CDR 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 Apple CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple CDR has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Apple CDR go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Apple CDR
Assuming the 90 days trading horizon UnitedHealth Group CDR is expected to under-perform the Apple CDR. In addition to that, UnitedHealth Group is 1.18 times more volatile than Apple CDR. It trades about -0.05 of its total potential returns per unit of risk. Apple CDR is currently generating about 0.22 per unit of volatility. If you would invest 3,266 in Apple CDR on September 10, 2025 and sell it today you would earn a total of 715.00 from holding Apple CDR or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UnitedHealth Group CDR vs. Apple CDR
Performance |
| Timeline |
| UnitedHealth Group CDR |
| Apple CDR |
UnitedHealth Group and Apple CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Apple CDR
The main advantage of trading using opposite UnitedHealth Group and Apple CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Apple CDR 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 Apple CDR will offset losses from the drop in Apple CDR's long position.| UnitedHealth Group vs. East Africa Metals | UnitedHealth Group vs. Advent Wireless | UnitedHealth Group vs. Cogeco Communications | UnitedHealth Group vs. Kingfisher Metals Corp |
| Apple CDR vs. Mayfair Acquisition | Apple CDR vs. Quipt Home Medical | Apple CDR vs. Profound Medical Corp | Apple CDR vs. IGM Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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