Correlation Between GoHealth and Eagle Pointome
Can any of the company-specific risk be diversified away by investing in both GoHealth and Eagle Pointome 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 Eagle Pointome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Eagle Pointome, you can compare the effects of market volatilities on GoHealth and Eagle Pointome 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 Eagle Pointome. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Eagle Pointome.
Diversification Opportunities for GoHealth and Eagle Pointome
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GoHealth and Eagle is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Eagle Pointome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pointome 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 Eagle Pointome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pointome has no effect on the direction of GoHealth i.e., GoHealth and Eagle Pointome go up and down completely randomly.
Pair Corralation between GoHealth and Eagle Pointome
Given the investment horizon of 90 days GoHealth is expected to generate 16.12 times more return on investment than Eagle Pointome. However, GoHealth is 16.12 times more volatile than Eagle Pointome. It trades about 0.05 of its potential returns per unit of risk. Eagle Pointome is currently generating about 0.15 per unit of risk. If you would invest 1,160 in GoHealth on August 27, 2024 and sell it today you would earn a total of 30.00 from holding GoHealth or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Eagle Pointome
Performance |
| Timeline |
| GoHealth |
| Eagle Pointome |
GoHealth and Eagle Pointome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Eagle Pointome
The main advantage of trading using opposite GoHealth and Eagle Pointome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Eagle Pointome 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 Eagle Pointome will offset losses from the drop in Eagle Pointome's long position.| GoHealth vs. CorVel Corp | GoHealth vs. eHealth | GoHealth vs. Aquagold International | GoHealth vs. Morningstar Unconstrained Allocation |
| Eagle Pointome vs. Maiden Holdings | Eagle Pointome vs. Aspen Insurance Holdings | Eagle Pointome vs. GoHealth | Eagle Pointome vs. Cincinnati Financial |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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