Correlation Between GE HealthCare and Craneware Plc
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Craneware Plc 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 Craneware Plc 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 Craneware plc, you can compare the effects of market volatilities on GE HealthCare and Craneware Plc 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 Craneware Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Craneware Plc.
Diversification Opportunities for GE HealthCare and Craneware Plc
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GEHC and Craneware is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Craneware plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Craneware plc 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 Craneware Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Craneware plc has no effect on the direction of GE HealthCare i.e., GE HealthCare and Craneware Plc go up and down completely randomly.
Pair Corralation between GE HealthCare and Craneware Plc
If you would invest 2,451 in Craneware plc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Craneware plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE HealthCare Technologies vs. Craneware plc
Performance |
| Timeline |
| GE HealthCare Techno |
| Craneware plc |
GE HealthCare and Craneware Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and Craneware Plc
The main advantage of trading using opposite GE HealthCare and Craneware Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Craneware Plc 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 Craneware Plc will offset losses from the drop in Craneware Plc's long position.| GE HealthCare vs. Profound Medical Corp | GE HealthCare vs. Si Bone | GE HealthCare vs. Nevro Corp | GE HealthCare vs. Paragon 28 |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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