Correlation Between GoHealth and Willamette Valley
Can any of the company-specific risk be diversified away by investing in both GoHealth and Willamette Valley 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 Willamette Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Willamette Valley Vineyards, you can compare the effects of market volatilities on GoHealth and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Willamette Valley.
Diversification Opportunities for GoHealth and Willamette Valley
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoHealth and Willamette is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of GoHealth i.e., GoHealth and Willamette Valley go up and down completely randomly.
Pair Corralation between GoHealth and Willamette Valley
Given the investment horizon of 90 days GoHealth is expected to generate 2.69 times more return on investment than Willamette Valley. However, GoHealth is 2.69 times more volatile than Willamette Valley Vineyards. It trades about 0.02 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.05 per unit of risk. If you would invest 1,324 in GoHealth on August 31, 2024 and sell it today you would lose (43.00) from holding GoHealth or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Willamette Valley Vineyards
Performance |
| Timeline |
| GoHealth |
| Willamette Valley |
GoHealth and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Willamette Valley
The main advantage of trading using opposite GoHealth and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |