Correlation Between GE HealthCare and Talkspace
Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Talkspace 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 Talkspace 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 Talkspace, you can compare the effects of market volatilities on GE HealthCare and Talkspace 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 Talkspace. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Talkspace.
Diversification Opportunities for GE HealthCare and Talkspace
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEHC and Talkspace is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace 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 Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of GE HealthCare i.e., GE HealthCare and Talkspace go up and down completely randomly.
Pair Corralation between GE HealthCare and Talkspace
Given the investment horizon of 90 days GE HealthCare is expected to generate 3.18 times less return on investment than Talkspace. But when comparing it to its historical volatility, GE HealthCare Technologies is 2.18 times less risky than Talkspace. It trades about 0.05 of its potential returns per unit of risk. Talkspace is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Talkspace on August 24, 2024 and sell it today you would earn a total of 137.00 from holding Talkspace or generate 70.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE HealthCare Technologies vs. Talkspace
Performance |
| Timeline |
| GE HealthCare Techno |
| Talkspace |
GE HealthCare and Talkspace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE HealthCare and Talkspace
The main advantage of trading using opposite GE HealthCare and Talkspace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Talkspace 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 Talkspace will offset losses from the drop in Talkspace's long position.| GE HealthCare vs. Teladoc | GE HealthCare vs. Veeva Systems Class | GE HealthCare vs. 10X Genomics | GE HealthCare vs. Progyny |
| Talkspace vs. Taboola | Talkspace vs. Payoneer Global | Talkspace vs. Katapult Holdings | Talkspace vs. ATI Physical Therapy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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