Correlation Between GE HealthCare and National Research
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and National Research 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 National Research 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 National Research Corp, you can compare the effects of market volatilities on GE HealthCare and National Research 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 National Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and National Research.
Diversification Opportunities for GE HealthCare and National Research
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GEHC and National is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp 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 National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of GE HealthCare i.e., GE HealthCare and National Research go up and down completely randomly.
Pair Corralation between GE HealthCare and National Research
Given the investment horizon of 90 days GE HealthCare Technologies is expected to generate 0.51 times more return on investment than National Research. However, GE HealthCare Technologies is 1.94 times less risky than National Research. It trades about 0.05 of its potential returns per unit of risk. National Research Corp is currently generating about -0.08 per unit of risk. If you would invest 7,691 in GE HealthCare Technologies on September 3, 2024 and sell it today you would earn a total of 617.00 from holding GE HealthCare Technologies or generate 8.02% 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. National Research Corp
Performance |
| Timeline |
| GE HealthCare Techno |
| National Research Corp |
GE HealthCare and National Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and National Research
The main advantage of trading using opposite GE HealthCare and National Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, National Research 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 National Research will offset losses from the drop in National Research's long position.| GE HealthCare vs. Teladoc | GE HealthCare vs. Veeva Systems Class | GE HealthCare vs. 10X Genomics | GE HealthCare vs. Progyny |
| National Research vs. Omega Flex | National Research vs. NI Holdings | National Research vs. PC Connection | National Research vs. Northrim BanCorp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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