Correlation Between Oscar Health and Rocket Companies

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

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

Diversification Opportunities for Oscar Health and Rocket Companies

0.08

Correlation Coefficient

Oscar Health  Rocket Companies

Significant diversification

The 3 months correlation between Oscar and Rocket is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Oscar Health and Rocket Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocket Companies and Oscar Health 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 Oscar Health are associated (or correlated) with Rocket Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocket Companies has no effect on the direction of Oscar Health i.e., Oscar Health and Rocket Companies go up and down completely randomly.

Pair Corralation between Oscar Health and Rocket Companies

Given the investment horizon of 90 days Oscar Health is expected to under-perform the Rocket Companies. In addition to that, Oscar Health is 1.8 times more volatile than Rocket Companies. It trades about -0.03 of its total potential returns per unit of risk. Rocket Companies is currently generating about -0.02 per unit of volatility. If you would invest  2,048  in Rocket Companies on September 8, 2025 and sell it today you would lose (145.00) from holding Rocket Companies or give up 7.08% of portfolio value over 90 days.

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

Oscar Health  vs.  Rocket Companies

Oscar Health

Risk-Adjusted Performance

Weakest

Over the last 90 days Oscar Health has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Rocket Companies

Risk-Adjusted Performance

Weakest

Over the last 90 days Rocket Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Rocket Companies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Oscar Health and Rocket Companies

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

The idea behind Oscar Health and Rocket Companies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.