Correlation Between Goosehead Insurance and Graphic Packaging

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

By analyzing existing cross correlation between Goosehead Insurance and Graphic Packaging Holding, you can compare the effects of market volatilities on Goosehead Insurance and Graphic Packaging 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 Goosehead Insurance with a short position of Graphic Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goosehead Insurance and Graphic Packaging.

Diversification Opportunities for Goosehead Insurance and Graphic Packaging

0.0

Correlation Coefficient

Goosehead Insurance  Graphic Packaging

Pay attention - limited upside

The 3 months correlation between Goosehead and Graphic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance and Graphic Packaging Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging Holding and Goosehead Insurance 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 Goosehead Insurance are associated (or correlated) with Graphic Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging Holding has no effect on the direction of Goosehead Insurance i.e., Goosehead Insurance and Graphic Packaging go up and down completely randomly.

Pair Corralation between Goosehead Insurance and Graphic Packaging

If you would invest  9,632  in Goosehead Insurance on December 22, 2024 and sell it today you would earn a total of  803.00  from holding Goosehead Insurance or generate 8.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Goosehead Insurance  vs.  Graphic Packaging Holding

Goosehead Insurance

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goosehead Insurance are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Goosehead Insurance may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Graphic Packaging Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Graphic Packaging Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Goosehead Insurance and Graphic Packaging

The main advantage of trading using opposite Goosehead Insurance and Graphic Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance position performs unexpectedly, Graphic Packaging 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 Graphic Packaging will offset losses from the drop in Graphic Packaging's long position.

The idea behind Goosehead Insurance and Graphic Packaging Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.