Correlation Between UnitedHealth Group and S A P
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and S A P 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 S A P 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 Saputo Inc, you can compare the effects of market volatilities on UnitedHealth Group and S A P 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 S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and S A P.
Diversification Opportunities for UnitedHealth Group and S A P
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between UnitedHealth and SAP is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group CDR and Saputo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saputo Inc 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saputo Inc has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and S A P go up and down completely randomly.
Pair Corralation between UnitedHealth Group and S A P
Assuming the 90 days trading horizon UnitedHealth Group is expected to generate 2.37 times less return on investment than S A P. In addition to that, UnitedHealth Group is 1.6 times more volatile than Saputo Inc. It trades about 0.05 of its total potential returns per unit of risk. Saputo Inc is currently generating about 0.2 per unit of volatility. If you would invest 3,291 in Saputo Inc on August 19, 2025 and sell it today you would earn a total of 513.00 from holding Saputo Inc or generate 15.59% 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. Saputo Inc
Performance |
| Timeline |
| UnitedHealth Group CDR |
| Saputo Inc |
UnitedHealth Group and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and S A P
The main advantage of trading using opposite UnitedHealth Group and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| UnitedHealth Group vs. Constellation Software | UnitedHealth Group vs. Rogers Communications | UnitedHealth Group vs. Computer Modelling Group | UnitedHealth Group vs. Primaris Retail RE |
| S A P vs. Molson Coors Canada | S A P vs. George Weston Limited | S A P vs. Empire Company Limited | S A P vs. Loblaw Companies Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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