Correlation Between ICC Holdings and GoHealth
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and GoHealth 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 ICC Holdings and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and GoHealth, you can compare the effects of market volatilities on ICC Holdings and GoHealth 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 ICC Holdings with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and GoHealth.
Diversification Opportunities for ICC Holdings and GoHealth
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICC and GoHealth is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and ICC Holdings 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 ICC Holdings are associated (or correlated) with GoHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoHealth has no effect on the direction of ICC Holdings i.e., ICC Holdings and GoHealth go up and down completely randomly.
Pair Corralation between ICC Holdings and GoHealth
Given the investment horizon of 90 days ICC Holdings is expected to generate 11.18 times more return on investment than GoHealth. However, ICC Holdings is 11.18 times more volatile than GoHealth. It trades about 0.05 of its potential returns per unit of risk. GoHealth is currently generating about 0.01 per unit of risk. If you would invest 1,575 in ICC Holdings on August 24, 2024 and sell it today you would earn a total of 749.00 from holding ICC Holdings or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.69% |
| Values | Daily Returns |
ICC Holdings vs. GoHealth
Performance |
| Timeline |
| ICC Holdings |
| GoHealth |
ICC Holdings and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and GoHealth
The main advantage of trading using opposite ICC Holdings and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, GoHealth 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 GoHealth will offset losses from the drop in GoHealth's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |