Correlation Between GoHealth and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both GoHealth and GameStop Corp 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 GameStop Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and GameStop Corp, you can compare the effects of market volatilities on GoHealth and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and GameStop Corp.
Diversification Opportunities for GoHealth and GameStop Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoHealth and GameStop is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of GoHealth i.e., GoHealth and GameStop Corp go up and down completely randomly.
Pair Corralation between GoHealth and GameStop Corp
Given the investment horizon of 90 days GoHealth is expected to generate 1.03 times less return on investment than GameStop Corp. In addition to that, GoHealth is 1.31 times more volatile than GameStop Corp. It trades about 0.17 of its total potential returns per unit of risk. GameStop Corp is currently generating about 0.23 per unit of volatility. If you would invest 2,293 in GameStop Corp on August 31, 2024 and sell it today you would earn a total of 796.00 from holding GameStop Corp or generate 34.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. GameStop Corp
Performance |
| Timeline |
| GoHealth |
| GameStop Corp |
GoHealth and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and GameStop Corp
The main advantage of trading using opposite GoHealth and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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