Correlation Between GE HealthCare and Signify Health
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Signify Health 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 Signify Health 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 Signify Health, you can compare the effects of market volatilities on GE HealthCare and Signify Health 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 Signify Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Signify Health.
Diversification Opportunities for GE HealthCare and Signify Health
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GEHC and Signify is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Signify Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify Health 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 Signify Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify Health has no effect on the direction of GE HealthCare i.e., GE HealthCare and Signify Health go up and down completely randomly.
Pair Corralation between GE HealthCare and Signify Health
If you would invest 3,049 in Signify Health on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Signify Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
GE HealthCare Technologies vs. Signify Health
Performance |
| Timeline |
| GE HealthCare Techno |
| Signify Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE HealthCare and Signify Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and Signify Health
The main advantage of trading using opposite GE HealthCare and Signify Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Signify Health 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 Signify Health will offset losses from the drop in Signify Health's long position.| GE HealthCare vs. Profound Medical Corp | GE HealthCare vs. Si Bone | GE HealthCare vs. Nevro Corp | GE HealthCare vs. Paragon 28 |
| Signify Health vs. Evolent Health | Signify Health vs. CareMax | Signify Health vs. Certara | Signify Health vs. National Research 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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