Correlation Between Maanshan Iron and GoHealth
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron 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 Maanshan Iron and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maanshan Iron Steel and GoHealth, you can compare the effects of market volatilities on Maanshan Iron 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 Maanshan Iron with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and GoHealth.
Diversification Opportunities for Maanshan Iron and GoHealth
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maanshan and GoHealth is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Maanshan Iron 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 Maanshan Iron Steel 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 Maanshan Iron i.e., Maanshan Iron and GoHealth go up and down completely randomly.
Pair Corralation between Maanshan Iron and GoHealth
Assuming the 90 days horizon Maanshan Iron is expected to generate 112.0 times less return on investment than GoHealth. But when comparing it to its historical volatility, Maanshan Iron Steel is 1.41 times less risky than GoHealth. It trades about 0.0 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 1,402 in GoHealth on August 28, 2024 and sell it today you would lose (236.00) from holding GoHealth or give up 16.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maanshan Iron Steel vs. GoHealth
Performance |
| Timeline |
| Maanshan Iron Steel |
| GoHealth |
Maanshan Iron and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and GoHealth
The main advantage of trading using opposite Maanshan Iron and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron 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.| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. Mesabi Trust | Maanshan Iron vs. Universal Stainless Alloy | Maanshan Iron vs. POSCO Holdings |
| GoHealth vs. CorVel Corp | GoHealth vs. eHealth | GoHealth vs. Aquagold International | GoHealth vs. Morningstar Unconstrained Allocation |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |