Correlation Between Walker Dunlop and GoHealth
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop 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 Walker Dunlop and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GoHealth, you can compare the effects of market volatilities on Walker Dunlop 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 Walker Dunlop with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GoHealth.
Diversification Opportunities for Walker Dunlop and GoHealth
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and GoHealth is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Walker Dunlop 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 Walker Dunlop 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 Walker Dunlop i.e., Walker Dunlop and GoHealth go up and down completely randomly.
Pair Corralation between Walker Dunlop and GoHealth
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.06 times less return on investment than GoHealth. But when comparing it to its historical volatility, Walker Dunlop is 2.33 times less risky than GoHealth. It trades about 0.02 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 1,681 in GoHealth on November 1, 2024 and sell it today you would lose (80.00) from holding GoHealth or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. GoHealth
Performance |
| Timeline |
| Walker Dunlop |
| GoHealth |
Walker Dunlop and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GoHealth
The main advantage of trading using opposite Walker Dunlop and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop 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.| Walker Dunlop vs. Guild Holdings Co | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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