Correlation Between Reliq Health and GE HealthCare
Can any of the company-specific risk be diversified away by investing in both Reliq Health and GE HealthCare 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 Reliq Health and GE HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reliq Health Technologies and GE HealthCare Technologies, you can compare the effects of market volatilities on Reliq Health and GE HealthCare 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 Reliq Health with a short position of GE HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliq Health and GE HealthCare.
Diversification Opportunities for Reliq Health and GE HealthCare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Reliq and GEHC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Reliq Health Technologies and GE HealthCare Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE HealthCare Techno and Reliq 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 Reliq Health Technologies are associated (or correlated) with GE HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE HealthCare Techno has no effect on the direction of Reliq Health i.e., Reliq Health and GE HealthCare go up and down completely randomly.
Pair Corralation between Reliq Health and GE HealthCare
Assuming the 90 days horizon Reliq Health Technologies is expected to generate 107.43 times more return on investment than GE HealthCare. However, Reliq Health is 107.43 times more volatile than GE HealthCare Technologies. It trades about 0.15 of its potential returns per unit of risk. GE HealthCare Technologies is currently generating about -0.06 per unit of risk. If you would invest 4.00 in Reliq Health Technologies on September 12, 2024 and sell it today you would lose (3.99) from holding Reliq Health Technologies or give up 99.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Reliq Health Technologies vs. GE HealthCare Technologies
Performance |
Timeline |
Reliq Health Technologies |
GE HealthCare Techno |
Reliq Health and GE HealthCare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Reliq Health and GE HealthCare
The main advantage of trading using opposite Reliq Health and GE HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reliq Health position performs unexpectedly, GE HealthCare 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 GE HealthCare will offset losses from the drop in GE HealthCare's long position.Reliq Health vs. Achiko AG | Reliq Health vs. NetraMark Holdings | Reliq Health vs. EGF Theramed Health | Reliq Health vs. Mitesco |
GE HealthCare vs. Teladoc | GE HealthCare vs. Veeva Systems Class | GE HealthCare vs. 10X Genomics | GE HealthCare vs. Progyny |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |