Correlation Between GoHealth and Britannia Bulk
Can any of the company-specific risk be diversified away by investing in both GoHealth and Britannia Bulk 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 GoHealth and Britannia Bulk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Britannia Bulk Holdings, you can compare the effects of market volatilities on GoHealth and Britannia Bulk 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 GoHealth with a short position of Britannia Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Britannia Bulk.
Diversification Opportunities for GoHealth and Britannia Bulk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoHealth and Britannia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Britannia Bulk Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Britannia Bulk Holdings and GoHealth 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 GoHealth are associated (or correlated) with Britannia Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Britannia Bulk Holdings has no effect on the direction of GoHealth i.e., GoHealth and Britannia Bulk go up and down completely randomly.
Pair Corralation between GoHealth and Britannia Bulk
Given the investment horizon of 90 days GoHealth is expected to generate 72.14 times less return on investment than Britannia Bulk. But when comparing it to its historical volatility, GoHealth is 15.43 times less risky than Britannia Bulk. It trades about 0.02 of its potential returns per unit of risk. Britannia Bulk Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Britannia Bulk Holdings on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Britannia Bulk Holdings or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 30.85% |
| Values | Daily Returns |
GoHealth vs. Britannia Bulk Holdings
Performance |
| Timeline |
| GoHealth |
| Britannia Bulk Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GoHealth and Britannia Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Britannia Bulk
The main advantage of trading using opposite GoHealth and Britannia Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Britannia Bulk 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 Britannia Bulk will offset losses from the drop in Britannia Bulk's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Britannia Bulk vs. NI Holdings | Britannia Bulk vs. Codexis | Britannia Bulk vs. GoHealth | Britannia Bulk vs. Kinsale Capital Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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