Correlation Between Jacobs Solutions and GoHealth
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions 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 Jacobs Solutions and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and GoHealth, you can compare the effects of market volatilities on Jacobs Solutions 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 Jacobs Solutions with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and GoHealth.
Diversification Opportunities for Jacobs Solutions and GoHealth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacobs and GoHealth is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions i.e., Jacobs Solutions and GoHealth go up and down completely randomly.
Pair Corralation between Jacobs Solutions and GoHealth
Taking into account the 90-day investment horizon Jacobs Solutions is expected to generate 0.28 times more return on investment than GoHealth. However, Jacobs Solutions is 3.57 times less risky than GoHealth. It trades about 0.09 of its potential returns per unit of risk. GoHealth is currently generating about 0.0 per unit of risk. If you would invest 10,463 in Jacobs Solutions on September 12, 2024 and sell it today you would earn a total of 3,049 from holding Jacobs Solutions or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacobs Solutions vs. GoHealth
Performance |
| Timeline |
| Jacobs Solutions |
| GoHealth |
Jacobs Solutions and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and GoHealth
The main advantage of trading using opposite Jacobs Solutions and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions 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.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |