Correlation Between GoHealth and Valneva SE
Can any of the company-specific risk be diversified away by investing in both GoHealth and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Valneva SE ADR, you can compare the effects of market volatilities on GoHealth and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Valneva SE.
Diversification Opportunities for GoHealth and Valneva SE
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GoHealth and Valneva is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of GoHealth i.e., GoHealth and Valneva SE go up and down completely randomly.
Pair Corralation between GoHealth and Valneva SE
Given the investment horizon of 90 days GoHealth is expected to generate 1.44 times more return on investment than Valneva SE. However, GoHealth is 1.44 times more volatile than Valneva SE ADR. It trades about 0.15 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.29 per unit of risk. If you would invest 828.00 in GoHealth on September 12, 2024 and sell it today you would earn a total of 345.00 from holding GoHealth or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Valneva SE ADR
Performance |
| Timeline |
| GoHealth |
| Valneva SE ADR |
GoHealth and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Valneva SE
The main advantage of trading using opposite GoHealth and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| GoHealth vs. CorVel Corp | GoHealth vs. Erie Indemnity | GoHealth vs. Crawford Company | GoHealth vs. eHealth |
| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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