Correlation Between Zhibao Technology and GoHealth
Can any of the company-specific risk be diversified away by investing in both Zhibao Technology 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 Zhibao Technology and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhibao Technology Class and GoHealth, you can compare the effects of market volatilities on Zhibao Technology 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 Zhibao Technology with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhibao Technology and GoHealth.
Diversification Opportunities for Zhibao Technology and GoHealth
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhibao and GoHealth is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zhibao Technology Class and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and Zhibao Technology 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 Zhibao Technology Class 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 Zhibao Technology i.e., Zhibao Technology and GoHealth go up and down completely randomly.
Pair Corralation between Zhibao Technology and GoHealth
Given the investment horizon of 90 days Zhibao Technology Class is expected to under-perform the GoHealth. In addition to that, Zhibao Technology is 1.2 times more volatile than GoHealth. It trades about -0.14 of its total potential returns per unit of risk. GoHealth is currently generating about 0.16 per unit of volatility. If you would invest 912.00 in GoHealth on October 31, 2024 and sell it today you would earn a total of 689.00 from holding GoHealth or generate 75.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhibao Technology Class vs. GoHealth
Performance |
| Timeline |
| Zhibao Technology Class |
| GoHealth |
Zhibao Technology and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhibao Technology and GoHealth
The main advantage of trading using opposite Zhibao Technology and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhibao Technology 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.| Zhibao Technology vs. Vasta Platform | Zhibao Technology vs. Gannett Co | Zhibao Technology vs. Logan Ridge Finance | Zhibao Technology vs. Scholastic |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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