Correlation Between GoHealth and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both GoHealth and Cracker Barrel 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 Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Cracker Barrel Old, you can compare the effects of market volatilities on GoHealth and Cracker Barrel 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 Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Cracker Barrel.
Diversification Opportunities for GoHealth and Cracker Barrel
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GoHealth and Cracker is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Cracker Barrel Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cracker Barrel Old 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 Cracker Barrel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cracker Barrel Old has no effect on the direction of GoHealth i.e., GoHealth and Cracker Barrel go up and down completely randomly.
Pair Corralation between GoHealth and Cracker Barrel
Given the investment horizon of 90 days GoHealth is expected to generate 1.29 times more return on investment than Cracker Barrel. However, GoHealth is 1.29 times more volatile than Cracker Barrel Old. It trades about 0.08 of its potential returns per unit of risk. Cracker Barrel Old is currently generating about 0.1 per unit of risk. If you would invest 1,161 in GoHealth on August 31, 2024 and sell it today you would earn a total of 73.00 from holding GoHealth or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Cracker Barrel Old
Performance |
| Timeline |
| GoHealth |
| Cracker Barrel Old |
GoHealth and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Cracker Barrel
The main advantage of trading using opposite GoHealth and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Cracker Barrel 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 Cracker Barrel will offset losses from the drop in Cracker Barrel's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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