Correlation Between Reliance Global and GoHealth
Can any of the company-specific risk be diversified away by investing in both Reliance Global 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 Reliance Global and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reliance Global Group and GoHealth, you can compare the effects of market volatilities on Reliance Global 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 Reliance Global with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliance Global and GoHealth.
Diversification Opportunities for Reliance Global and GoHealth
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Reliance and GoHealth is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Global Group and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Reliance Global 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 Reliance Global Group 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 Reliance Global i.e., Reliance Global and GoHealth go up and down completely randomly.
Pair Corralation between Reliance Global and GoHealth
Given the investment horizon of 90 days Reliance Global Group is expected to under-perform the GoHealth. In addition to that, Reliance Global is 2.06 times more volatile than GoHealth. It trades about -0.05 of its total potential returns per unit of risk. GoHealth is currently generating about 0.05 per unit of volatility. If you would invest 1,011 in GoHealth on August 24, 2024 and sell it today you would earn a total of 139.00 from holding GoHealth or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Reliance Global Group vs. GoHealth
Performance |
| Timeline |
| Reliance Global Group |
| GoHealth |
Reliance Global and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reliance Global and GoHealth
The main advantage of trading using opposite Reliance Global and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reliance Global 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.| Reliance Global vs. Huize Holding | Reliance Global vs. Selectquote | Reliance Global vs. eHealth | Reliance Global vs. GoHealth |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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