Correlation Between Brown Brown and GoHealth
Can any of the company-specific risk be diversified away by investing in both Brown Brown 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 Brown Brown and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brown Brown and GoHealth, you can compare the effects of market volatilities on Brown Brown 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 Brown Brown with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brown Brown and GoHealth.
Diversification Opportunities for Brown Brown and GoHealth
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brown and GoHealth is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brown Brown and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Brown Brown 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 Brown Brown 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 Brown Brown i.e., Brown Brown and GoHealth go up and down completely randomly.
Pair Corralation between Brown Brown and GoHealth
Considering the 90-day investment horizon Brown Brown is expected to generate 0.23 times more return on investment than GoHealth. However, Brown Brown is 4.28 times less risky than GoHealth. It trades about 0.11 of its potential returns per unit of risk. GoHealth is currently generating about 0.02 per unit of risk. If you would invest 5,760 in Brown Brown on November 1, 2024 and sell it today you would earn a total of 4,557 from holding Brown Brown or generate 79.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brown Brown vs. GoHealth
Performance |
| Timeline |
| Brown Brown |
| GoHealth |
Brown Brown and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brown Brown and GoHealth
The main advantage of trading using opposite Brown Brown and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brown Brown 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.| Brown Brown vs. Marsh McLennan Companies | Brown Brown vs. Aon PLC | Brown Brown vs. Willis Towers Watson | Brown Brown vs. Erie Indemnity |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |