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

-0.07

Correlation Coefficient

Zhibao Technology  GoHealth

Good diversification

The 3 months correlation between Zhibao and GoHealth is -0.07. 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 1.03 times more volatile than GoHealth. It trades about -0.08 of its total potential returns per unit of risk. GoHealth is currently generating about 0.02 per unit of volatility. If you would invest  1,280  in GoHealth on December 29, 2024 and sell it today you would lose (42.00) from holding GoHealth or give up 3.28% of portfolio value over 90 days.

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

Zhibao Technology Class  vs.  GoHealth

Zhibao Technology Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zhibao Technology Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

GoHealth

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GoHealth are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, GoHealth is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

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.

The idea behind Zhibao Technology Class 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.