Correlation Between Aldel Financial and GoHealth
Can any of the company-specific risk be diversified away by investing in both Aldel Financial 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 Aldel Financial and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and GoHealth, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and GoHealth.
Diversification Opportunities for Aldel Financial and GoHealth
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aldel and GoHealth is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Aldel Financial 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 Aldel Financial II 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 Aldel Financial i.e., Aldel Financial and GoHealth go up and down completely randomly.
Pair Corralation between Aldel Financial and GoHealth
Assuming the 90 days horizon Aldel Financial is expected to generate 1.46 times less return on investment than GoHealth. But when comparing it to its historical volatility, Aldel Financial II is 44.78 times less risky than GoHealth. It trades about 0.05 of its potential returns per unit of risk. GoHealth is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,448 in GoHealth on September 12, 2024 and sell it today you would lose (318.00) from holding GoHealth or give up 21.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.52% |
| Values | Daily Returns |
Aldel Financial II vs. GoHealth
Performance |
| Timeline |
| Aldel Financial II |
| GoHealth |
Aldel Financial and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and GoHealth
The main advantage of trading using opposite Aldel Financial and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. CO2 Energy Transition |
| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |