Correlation Between GE HealthCare and Achiko AG
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Achiko AG 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 GE HealthCare and Achiko AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE HealthCare Technologies and Achiko AG, you can compare the effects of market volatilities on GE HealthCare and Achiko AG 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 GE HealthCare with a short position of Achiko AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Achiko AG.
Diversification Opportunities for GE HealthCare and Achiko AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEHC and Achiko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Achiko AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Achiko AG and GE HealthCare 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 GE HealthCare Technologies are associated (or correlated) with Achiko AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Achiko AG has no effect on the direction of GE HealthCare i.e., GE HealthCare and Achiko AG go up and down completely randomly.
Pair Corralation between GE HealthCare and Achiko AG
If you would invest 0.26 in Achiko AG on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Achiko AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GE HealthCare Technologies vs. Achiko AG
Performance |
| Timeline |
| GE HealthCare Techno |
| Achiko AG |
GE HealthCare and Achiko AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and Achiko AG
The main advantage of trading using opposite GE HealthCare and Achiko AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Achiko AG 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 Achiko AG will offset losses from the drop in Achiko AG's long position.| GE HealthCare vs. Teladoc | GE HealthCare vs. Veeva Systems Class | GE HealthCare vs. 10X Genomics | GE HealthCare vs. Progyny |
| Achiko AG vs. Veeva Systems Class | Achiko AG vs. GE HealthCare Technologies | Achiko AG vs. M3 Inc | Achiko AG vs. Solventum Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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