Correlation Between GoHealth and Lendway

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

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

Diversification Opportunities for GoHealth and Lendway

-0.86

Correlation Coefficient

GoHealth  Lendway

Pay attention - limited upside

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

Pair Corralation between GoHealth and Lendway

Given the investment horizon of 90 days GoHealth is expected to under-perform the Lendway. But the stock apears to be less risky and, when comparing its historical volatility, GoHealth is 1.03 times less risky than Lendway. The stock trades about -0.15 of its potential returns per unit of risk. The Lendway is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  406.00  in Lendway on May 7, 2025 and sell it today you would earn a total of  99.00  from holding Lendway or generate 24.38% return on investment over 90 days.

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

GoHealth  vs.  Lendway

GoHealth

Risk-Adjusted Performance

Very Weak

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

Lendway

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lendway are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Lendway showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GoHealth and Lendway

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

The idea behind GoHealth and Lendway 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.