Correlation Between ACG Metals and GoHealth
Can any of the company-specific risk be diversified away by investing in both ACG Metals and GoHealth 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 ACG Metals and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and GoHealth, you can compare the effects of market volatilities on ACG Metals and GoHealth 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 ACG Metals with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and GoHealth.
Diversification Opportunities for ACG Metals and GoHealth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and GoHealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and ACG Metals 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 ACG Metals Limited are associated (or correlated) with GoHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoHealth has no effect on the direction of ACG Metals i.e., ACG Metals and GoHealth go up and down completely randomly.
Pair Corralation between ACG Metals and GoHealth
If you would invest 1,160 in GoHealth on August 28, 2024 and sell it today you would earn a total of 6.00 from holding GoHealth or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. GoHealth
Performance |
| Timeline |
| ACG Metals Limited |
| GoHealth |
ACG Metals and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and GoHealth
The main advantage of trading using opposite ACG Metals and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, GoHealth 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 GoHealth will offset losses from the drop in GoHealth's long position.| ACG Metals vs. BioNTech SE | ACG Metals vs. Turning Point Brands | ACG Metals vs. Keurig Dr Pepper | ACG Metals vs. Constellation Brands Class |
| GoHealth vs. CorVel Corp | GoHealth vs. eHealth | GoHealth vs. Aquagold International | GoHealth vs. Morningstar Unconstrained Allocation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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