Correlation Between GoHealth and Permanent TSB
Can any of the company-specific risk be diversified away by investing in both GoHealth and Permanent TSB 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 Permanent TSB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Permanent TSB Group, you can compare the effects of market volatilities on GoHealth and Permanent TSB 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 Permanent TSB. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Permanent TSB.
Diversification Opportunities for GoHealth and Permanent TSB
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GoHealth and Permanent is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Permanent TSB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permanent TSB Group 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 Permanent TSB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permanent TSB Group has no effect on the direction of GoHealth i.e., GoHealth and Permanent TSB go up and down completely randomly.
Pair Corralation between GoHealth and Permanent TSB
If you would invest 1,265 in GoHealth on September 4, 2024 and sell it today you would lose (19.00) from holding GoHealth or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
GoHealth vs. Permanent TSB Group
Performance |
| Timeline |
| GoHealth |
| Permanent TSB Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GoHealth and Permanent TSB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Permanent TSB
The main advantage of trading using opposite GoHealth and Permanent TSB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Permanent TSB 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 Permanent TSB will offset losses from the drop in Permanent TSB's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Permanent TSB vs. LENSAR Inc | Permanent TSB vs. Ryman Hospitality Properties | Permanent TSB vs. Esperion Therapeutics | Permanent TSB vs. Sonida Senior Living |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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