Correlation Between GoHealth and Huize Holding
Can any of the company-specific risk be diversified away by investing in both GoHealth and Huize Holding 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 Huize Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Huize Holding, you can compare the effects of market volatilities on GoHealth and Huize Holding 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 Huize Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Huize Holding.
Diversification Opportunities for GoHealth and Huize Holding
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoHealth and Huize is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Huize Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huize Holding 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 Huize Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huize Holding has no effect on the direction of GoHealth i.e., GoHealth and Huize Holding go up and down completely randomly.
Pair Corralation between GoHealth and Huize Holding
Given the investment horizon of 90 days GoHealth is expected to generate 3.28 times less return on investment than Huize Holding. But when comparing it to its historical volatility, GoHealth is 1.22 times less risky than Huize Holding. It trades about 0.01 of its potential returns per unit of risk. Huize Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Huize Holding on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Huize Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Huize Holding
Performance |
| Timeline |
| GoHealth |
| Huize Holding |
GoHealth and Huize Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Huize Holding
The main advantage of trading using opposite GoHealth and Huize Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Huize Holding 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 Huize Holding will offset losses from the drop in Huize Holding's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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