Correlation Between Getty Images and GoHealth
Can any of the company-specific risk be diversified away by investing in both Getty Images 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 Getty Images and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and GoHealth, you can compare the effects of market volatilities on Getty Images 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 Getty Images with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and GoHealth.
Diversification Opportunities for Getty Images and GoHealth
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and GoHealth is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Getty Images 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 Getty Images Holdings 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 Getty Images i.e., Getty Images and GoHealth go up and down completely randomly.
Pair Corralation between Getty Images and GoHealth
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the GoHealth. But the stock apears to be less risky and, when comparing its historical volatility, Getty Images Holdings is 1.14 times less risky than GoHealth. The stock trades about -0.01 of its potential returns per unit of risk. The GoHealth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,064 in GoHealth on September 14, 2024 and sell it today you would earn a total of 55.00 from holding GoHealth or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Getty Images Holdings vs. GoHealth
Performance |
| Timeline |
| Getty Images Holdings |
| GoHealth |
Getty Images and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and GoHealth
The main advantage of trading using opposite Getty Images and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images 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.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| GoHealth vs. CorVel Corp | GoHealth vs. Erie Indemnity | GoHealth vs. Crawford Company | GoHealth vs. eHealth |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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