Correlation Between GoHealth and Monument Circle
Can any of the company-specific risk be diversified away by investing in both GoHealth and Monument Circle 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 Monument Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Monument Circle Acquisition, you can compare the effects of market volatilities on GoHealth and Monument Circle 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 Monument Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Monument Circle.
Diversification Opportunities for GoHealth and Monument Circle
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoHealth and Monument is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Monument Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Circle Acqu 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 Monument Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Circle Acqu has no effect on the direction of GoHealth i.e., GoHealth and Monument Circle go up and down completely randomly.
Pair Corralation between GoHealth and Monument Circle
If you would invest 1,160 in GoHealth on August 28, 2024 and sell it today you would earn a total of 6.00 from holding GoHealth or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
GoHealth vs. Monument Circle Acquisition
Performance |
| Timeline |
| GoHealth |
| Monument Circle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GoHealth and Monument Circle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Monument Circle
The main advantage of trading using opposite GoHealth and Monument Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Monument Circle 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 Monument Circle will offset losses from the drop in Monument Circle's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Monument Circle vs. ICC Holdings | Monument Circle vs. QBE Insurance Group | Monument Circle vs. European Wax Center | Monument Circle vs. GoHealth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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