Correlation Between Nextplat Corp and GoHealth
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp 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 Nextplat Corp and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and GoHealth, you can compare the effects of market volatilities on Nextplat Corp 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 Nextplat Corp with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and GoHealth.
Diversification Opportunities for Nextplat Corp and GoHealth
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nextplat and GoHealth is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and GoHealth go up and down completely randomly.
Pair Corralation between Nextplat Corp and GoHealth
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the GoHealth. But the stock apears to be less risky and, when comparing its historical volatility, Nextplat Corp is 1.34 times less risky than GoHealth. The stock trades about -0.02 of its potential returns per unit of risk. The GoHealth is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,374 in GoHealth on November 18, 2024 and sell it today you would earn a total of 541.00 from holding GoHealth or generate 39.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. GoHealth
Performance |
| Timeline |
| Nextplat Corp |
| GoHealth |
Nextplat Corp and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and GoHealth
The main advantage of trading using opposite Nextplat Corp and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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.| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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