Correlation Between EHealth and Brp
Can any of the company-specific risk be diversified away by investing in both EHealth and Brp 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 EHealth and Brp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eHealth and Brp Group, you can compare the effects of market volatilities on EHealth and Brp 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 EHealth with a short position of Brp. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHealth and Brp.
Diversification Opportunities for EHealth and Brp
Weak diversification
The 3 months correlation between EHealth and Brp is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding eHealth and Brp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brp Group and EHealth 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 eHealth are associated (or correlated) with Brp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brp Group has no effect on the direction of EHealth i.e., EHealth and Brp go up and down completely randomly.
Pair Corralation between EHealth and Brp
If you would invest 500.00 in eHealth on August 28, 2024 and sell it today you would earn a total of 45.00 from holding eHealth or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
eHealth vs. Brp Group
Performance |
| Timeline |
| eHealth |
| Brp Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EHealth and Brp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHealth and Brp
The main advantage of trading using opposite EHealth and Brp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHealth position performs unexpectedly, Brp 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 Brp will offset losses from the drop in Brp's long position.| EHealth vs. GoHealth | EHealth vs. Tian Ruixiang Holdings | EHealth vs. Huize Holding | EHealth vs. CorVel Corp |
| Brp vs. Arthur J Gallagher | Brp vs. Marsh McLennan Companies | Brp vs. Willis Towers Watson | Brp vs. Erie Indemnity |
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 Stocks Directory module to find actively traded stocks across global markets.
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