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Correlation Between Arthur J and EHealth

Analyzing existing cross correlation between Arthur J Gallagher Co and EHealth. You can compare the effects of market volatilities on Arthur J and EHealth 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 Arthur J with a short position of EHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthur J and EHealth.

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Diversification Opportunities for Arthur J and EHealth

Arthur J Gallagher Co diversification synergy
0.86
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<div class='circular--portrait-small' style='background:#FF0F00;color: white;font-size:1.1em;padding-top: 12px;;'>EHT</div>

Very poor diversification

The 3 months correlation between Arthur and EHealth is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Arthur J Gallagher Co and EHealth Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EHealth and Arthur J 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 Arthur J Gallagher Co are associated (or correlated) with EHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHealth has no effect on the direction of Arthur J i.e. Arthur J and EHealth go up and down completely randomly.

Pair Corralation between Arthur J and EHealth

Considering 30-days investment horizon, Arthur J is expected to generate 3.08 times less return on investment than EHealth. But when comparing it to its historical volatility, Arthur J Gallagher Co is 5.37 times less risky than EHealth. It trades about 0.33 of its potential returns per unit of risk. EHealth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  8,362  in EHealth on January 21, 2020 and sell it today you would earn a total of  4,662  from holding EHealth or generate 55.75% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Arthur J Gallagher Co  vs.  EHealth Inc

 Performance (%) 
    
  Timeline 
Arthur J Gallagher 
2222

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Arthur J Gallagher Co are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Arthur J exhibited solid returns over the last few months and may actually be approaching a breakup point.
EHealth 
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in EHealth are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Despite nearly unsteady fundamental indicators, EHealth layed out solid returns over the last few months and may actually be approaching a breakup point.

Arthur J and EHealth Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.