Correlation Between GoHealth and StandardAero,
Can any of the company-specific risk be diversified away by investing in both GoHealth and StandardAero, 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 StandardAero, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and StandardAero,, you can compare the effects of market volatilities on GoHealth and StandardAero, 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 StandardAero,. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and StandardAero,.
Diversification Opportunities for GoHealth and StandardAero,
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoHealth and StandardAero, is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and StandardAero, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StandardAero, 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 StandardAero,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StandardAero, has no effect on the direction of GoHealth i.e., GoHealth and StandardAero, go up and down completely randomly.
Pair Corralation between GoHealth and StandardAero,
Given the investment horizon of 90 days GoHealth is expected to generate 1.94 times more return on investment than StandardAero,. However, GoHealth is 1.94 times more volatile than StandardAero,. It trades about 0.12 of its potential returns per unit of risk. StandardAero, is currently generating about 0.02 per unit of risk. If you would invest 1,171 in GoHealth on September 2, 2024 and sell it today you would earn a total of 110.00 from holding GoHealth or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. StandardAero,
Performance |
| Timeline |
| GoHealth |
| StandardAero, |
GoHealth and StandardAero, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and StandardAero,
The main advantage of trading using opposite GoHealth and StandardAero, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, StandardAero, 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 StandardAero, will offset losses from the drop in StandardAero,'s long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| StandardAero, vs. JD Sports Fashion | StandardAero, vs. The Mosaic | StandardAero, vs. Origin Materials | StandardAero, vs. Codexis |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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