Correlation Between GoHealth and Tian Ruixiang

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Can any of the company-specific risk be diversified away by investing in both GoHealth and Tian Ruixiang 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 Tian Ruixiang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Tian Ruixiang Holdings, you can compare the effects of market volatilities on GoHealth and Tian Ruixiang 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 Tian Ruixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Tian Ruixiang.

Diversification Opportunities for GoHealth and Tian Ruixiang

GoHealthTianDiversified AwayGoHealthTianDiversified Away100%
0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between GoHealth and Tian is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Tian Ruixiang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tian Ruixiang Holdings 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 Tian Ruixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tian Ruixiang Holdings has no effect on the direction of GoHealth i.e., GoHealth and Tian Ruixiang go up and down completely randomly.

Pair Corralation between GoHealth and Tian Ruixiang

Given the investment horizon of 90 days GoHealth is expected to generate 0.89 times more return on investment than Tian Ruixiang. However, GoHealth is 1.12 times less risky than Tian Ruixiang. It trades about 0.08 of its potential returns per unit of risk. Tian Ruixiang Holdings is currently generating about -0.02 per unit of risk. If you would invest  1,009  in GoHealth on November 24, 2024 and sell it today you would earn a total of  785.00  from holding GoHealth or generate 77.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

GoHealth  vs.  Tian Ruixiang Holdings

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020304050
JavaScript chart by amCharts 3.21.15GOCO TIRX
       Timeline  
GoHealth 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GoHealth are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental indicators, GoHealth displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb101214161820
Tian Ruixiang Holdings 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Tian Ruixiang Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tian Ruixiang is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.61.822.22.42.6

GoHealth and Tian Ruixiang Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-16.31-12.22-8.12-4.03-0.024.158.5212.8917.2721.64 0.0110.0120.0130.0140.015
JavaScript chart by amCharts 3.21.15GOCO TIRX
       Returns  

Pair Trading with GoHealth and Tian Ruixiang

The main advantage of trading using opposite GoHealth and Tian Ruixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Tian Ruixiang 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 Tian Ruixiang will offset losses from the drop in Tian Ruixiang's long position.
The idea behind GoHealth and Tian Ruixiang Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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