Correlation Between AcuityAds Holdings and GoHealth
Can any of the company-specific risk be diversified away by investing in both AcuityAds 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 AcuityAds Holdings and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcuityAds Holdings and GoHealth, you can compare the effects of market volatilities on AcuityAds 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 AcuityAds Holdings with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcuityAds Holdings and GoHealth.
Diversification Opportunities for AcuityAds Holdings and GoHealth
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AcuityAds and GoHealth is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AcuityAds Holdings and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and AcuityAds 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 AcuityAds 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 AcuityAds Holdings i.e., AcuityAds Holdings and GoHealth go up and down completely randomly.
Pair Corralation between AcuityAds Holdings and GoHealth
Given the investment horizon of 90 days AcuityAds Holdings is expected to generate 1.33 times less return on investment than GoHealth. But when comparing it to its historical volatility, AcuityAds Holdings is 1.61 times less risky than GoHealth. It trades about 0.02 of its potential returns per unit of risk. GoHealth is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,700 in GoHealth on September 3, 2024 and sell it today you would lose (419.00) from holding GoHealth or give up 24.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
AcuityAds Holdings vs. GoHealth
Performance |
| Timeline |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GoHealth |
AcuityAds Holdings and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcuityAds Holdings and GoHealth
The main advantage of trading using opposite AcuityAds Holdings and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcuityAds 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.| AcuityAds Holdings vs. Siriuspoint | AcuityAds Holdings vs. Sun Life Financial | AcuityAds Holdings vs. NI Holdings | AcuityAds Holdings vs. MGIC Investment Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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