Correlation Between Brp and EHealth
Can any of the company-specific risk be diversified away by investing in both Brp and EHealth 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 Brp and EHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brp Group and eHealth, you can compare the effects of market volatilities on Brp and EHealth 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 Brp with a short position of EHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brp and EHealth.
Diversification Opportunities for Brp and EHealth
Weak diversification
The 3 months correlation between Brp and EHealth is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Brp Group and eHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eHealth and Brp 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 Brp Group are associated (or correlated) with EHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eHealth has no effect on the direction of Brp i.e., Brp and EHealth go up and down completely randomly.
Pair Corralation between Brp and EHealth
If you would invest 485.00 in eHealth on August 24, 2024 and sell it today you would earn a total of 10.00 from holding eHealth or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Brp Group vs. eHealth
Performance |
| Timeline |
| Brp Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eHealth |
Brp and EHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brp and EHealth
The main advantage of trading using opposite Brp and EHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brp position performs unexpectedly, EHealth 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 EHealth will offset losses from the drop in EHealth's long position.| Brp vs. Arthur J Gallagher | Brp vs. Marsh McLennan Companies | Brp vs. Willis Towers Watson | Brp vs. Erie Indemnity |
| EHealth vs. GoHealth | EHealth vs. Tian Ruixiang Holdings | EHealth vs. Huize Holding | EHealth vs. CorVel Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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