Correlation Between Pekin Life and GoHealth
Can any of the company-specific risk be diversified away by investing in both Pekin Life 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 Pekin Life and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and GoHealth, you can compare the effects of market volatilities on Pekin Life 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 Pekin Life with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and GoHealth.
Diversification Opportunities for Pekin Life and GoHealth
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pekin and GoHealth is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Pekin Life 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 Pekin Life Insurance 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 Pekin Life i.e., Pekin Life and GoHealth go up and down completely randomly.
Pair Corralation between Pekin Life and GoHealth
Given the investment horizon of 90 days Pekin Life is expected to generate 12.22 times less return on investment than GoHealth. But when comparing it to its historical volatility, Pekin Life Insurance is 3.11 times less risky than GoHealth. It trades about 0.01 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 1,238 in GoHealth on August 23, 2024 and sell it today you would lose (88.00) from holding GoHealth or give up 7.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pekin Life Insurance vs. GoHealth
Performance |
| Timeline |
| Pekin Life Insurance |
| GoHealth |
Pekin Life and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and GoHealth
The main advantage of trading using opposite Pekin Life and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life 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.| Pekin Life vs. Pioneer Floating Rate | Pekin Life vs. The Gabelli Equity | Pekin Life vs. Pioneer Municipal High | Pekin Life vs. Nuveen Global High |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |