Correlation Between GoHealth and Zoom Video
Can any of the company-specific risk be diversified away by investing in both GoHealth and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Zoom Video Communications, you can compare the effects of market volatilities on GoHealth and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Zoom Video.
Diversification Opportunities for GoHealth and Zoom Video
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GoHealth and Zoom is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of GoHealth i.e., GoHealth and Zoom Video go up and down completely randomly.
Pair Corralation between GoHealth and Zoom Video
Given the investment horizon of 90 days GoHealth is expected to generate 2.05 times less return on investment than Zoom Video. In addition to that, GoHealth is 2.37 times more volatile than Zoom Video Communications. It trades about 0.01 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.05 per unit of volatility. If you would invest 7,029 in Zoom Video Communications on August 27, 2024 and sell it today you would earn a total of 1,559 from holding Zoom Video Communications or generate 22.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Zoom Video Communications
Performance |
| Timeline |
| GoHealth |
| Zoom Video Communications |
GoHealth and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Zoom Video
The main advantage of trading using opposite GoHealth and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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