Correlation Between Under Armour and GoHealth
Can any of the company-specific risk be diversified away by investing in both Under Armour 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 Under Armour and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Under Armour C and GoHealth, you can compare the effects of market volatilities on Under Armour 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 Under Armour with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Under Armour and GoHealth.
Diversification Opportunities for Under Armour and GoHealth
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Under and GoHealth is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Under Armour 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 Under Armour C 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 Under Armour i.e., Under Armour and GoHealth go up and down completely randomly.
Pair Corralation between Under Armour and GoHealth
Allowing for the 90-day total investment horizon Under Armour C is expected to under-perform the GoHealth. But the stock apears to be less risky and, when comparing its historical volatility, Under Armour C is 1.89 times less risky than GoHealth. The stock trades about -0.2 of its potential returns per unit of risk. The GoHealth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,110 in GoHealth on September 19, 2024 and sell it today you would earn a total of 121.00 from holding GoHealth or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Under Armour C vs. GoHealth
Performance |
| Timeline |
| Under Armour C |
| GoHealth |
Under Armour and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Under Armour and GoHealth
The main advantage of trading using opposite Under Armour and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour 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.| Under Armour vs. Digital Brands Group | Under Armour vs. Data Storage | Under Armour vs. Auddia Inc | Under Armour vs. DatChat Series A |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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