Correlation Between WiMi Hologram and GoHealth

Can any of the company-specific risk be diversified away by investing in both WiMi Hologram 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 WiMi Hologram and GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WiMi Hologram Cloud and GoHealth, you can compare the effects of market volatilities on WiMi Hologram 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 WiMi Hologram with a short position of GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and GoHealth.

Diversification Opportunities for WiMi Hologram and GoHealth

-0.39

Correlation Coefficient

WiMi Hologram  GoHealth

Very good diversification

The 3 months correlation between WiMi and GoHealth is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth and WiMi Hologram 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 WiMi Hologram Cloud 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 WiMi Hologram i.e., WiMi Hologram and GoHealth go up and down completely randomly.

Pair Corralation between WiMi Hologram and GoHealth

Given the investment horizon of 90 days WiMi Hologram is expected to generate 7.28 times less return on investment than GoHealth. In addition to that, WiMi Hologram is 1.17 times more volatile than GoHealth. It trades about 0.01 of its total potential returns per unit of risk. GoHealth is currently generating about 0.09 per unit of volatility. If you would invest  905.00  in GoHealth on September 17, 2024 and sell it today you would earn a total of  179.00  from holding GoHealth or generate 19.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WiMi Hologram Cloud  vs.  GoHealth

WiMi Hologram Cloud

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WiMi Hologram Cloud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, WiMi Hologram is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

GoHealth

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GoHealth are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental indicators, GoHealth displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WiMi Hologram and GoHealth

The main advantage of trading using opposite WiMi Hologram and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram 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.

The idea behind WiMi Hologram Cloud and GoHealth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.