Correlation Between GoHealth and Summa Silver
Can any of the company-specific risk be diversified away by investing in both GoHealth and Summa Silver 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 Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Summa Silver Corp, you can compare the effects of market volatilities on GoHealth and Summa Silver 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Summa Silver.
Diversification Opportunities for GoHealth and Summa Silver
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GoHealth and Summa is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of GoHealth i.e., GoHealth and Summa Silver go up and down completely randomly.
Pair Corralation between GoHealth and Summa Silver
Given the investment horizon of 90 days GoHealth is expected to generate 1.14 times more return on investment than Summa Silver. However, GoHealth is 1.14 times more volatile than Summa Silver Corp. It trades about 0.12 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.38 per unit of risk. If you would invest 1,161 in GoHealth on August 31, 2024 and sell it today you would earn a total of 120.00 from holding GoHealth or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GoHealth vs. Summa Silver Corp
Performance |
| Timeline |
| GoHealth |
| Summa Silver Corp |
GoHealth and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Summa Silver
The main advantage of trading using opposite GoHealth and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Summa Silver 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 Summa Silver will offset losses from the drop in Summa Silver'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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