Correlation Between GE HealthCare and Ontrak
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Ontrak 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 Ontrak 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 Ontrak Inc, you can compare the effects of market volatilities on GE HealthCare and Ontrak 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 Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Ontrak.
Diversification Opportunities for GE HealthCare and Ontrak
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GEHC and Ontrak is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc 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 Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of GE HealthCare i.e., GE HealthCare and Ontrak go up and down completely randomly.
Pair Corralation between GE HealthCare and Ontrak
If you would invest 8,691 in GE HealthCare Technologies on November 1, 2024 and sell it today you would earn a total of 264.00 from holding GE HealthCare Technologies or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
GE HealthCare Technologies vs. Ontrak Inc
Performance |
| Timeline |
| GE HealthCare Techno |
| Ontrak Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE HealthCare and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and Ontrak
The main advantage of trading using opposite GE HealthCare and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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