Correlation Between Apogee Enterprises and GoHealth
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and GoHealth, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and GoHealth.
Diversification Opportunities for Apogee Enterprises and GoHealth
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apogee and GoHealth is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and GoHealth go up and down completely randomly.
Pair Corralation between Apogee Enterprises and GoHealth
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.51 times more return on investment than GoHealth. However, Apogee Enterprises is 1.95 times less risky than GoHealth. It trades about 0.12 of its potential returns per unit of risk. GoHealth is currently generating about 0.02 per unit of risk. If you would invest 4,439 in Apogee Enterprises on August 26, 2024 and sell it today you would earn a total of 3,883 from holding Apogee Enterprises or generate 87.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. GoHealth
Performance |
| Timeline |
| Apogee Enterprises |
| GoHealth |
Apogee Enterprises and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and GoHealth
The main advantage of trading using opposite Apogee Enterprises and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.| Apogee Enterprises vs. Trex Company | Apogee Enterprises vs. Armstrong World Industries | Apogee Enterprises vs. Gibraltar Industries | Apogee Enterprises vs. Travis Perkins PLC |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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