Correlation Between National CineMedia and GoHealth
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and GoHealth, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and GoHealth.
Diversification Opportunities for National CineMedia and GoHealth
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and GoHealth is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and GoHealth go up and down completely randomly.
Pair Corralation between National CineMedia and GoHealth
Given the investment horizon of 90 days National CineMedia is expected to generate 1.49 times more return on investment than GoHealth. However, National CineMedia is 1.49 times more volatile than GoHealth. It trades about 0.06 of its potential returns per unit of risk. GoHealth is currently generating about 0.03 per unit of risk. If you would invest 250.00 in National CineMedia on September 14, 2024 and sell it today you would earn a total of 480.00 from holding National CineMedia or generate 192.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
National CineMedia vs. GoHealth
Performance |
| Timeline |
| National CineMedia |
| GoHealth |
National CineMedia and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and GoHealth
The main advantage of trading using opposite National CineMedia and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
| GoHealth vs. CorVel Corp | GoHealth vs. Erie Indemnity | GoHealth vs. Crawford Company | GoHealth vs. eHealth |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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