Correlation Between Mitesco and GE HealthCare
Can any of the company-specific risk be diversified away by investing in both Mitesco and GE HealthCare 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 Mitesco and GE HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitesco and GE HealthCare Technologies, you can compare the effects of market volatilities on Mitesco and GE HealthCare 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 Mitesco with a short position of GE HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitesco and GE HealthCare.
Diversification Opportunities for Mitesco and GE HealthCare
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitesco and GEHC is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mitesco and GE HealthCare Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE HealthCare Techno and Mitesco 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 Mitesco are associated (or correlated) with GE HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE HealthCare Techno has no effect on the direction of Mitesco i.e., Mitesco and GE HealthCare go up and down completely randomly.
Pair Corralation between Mitesco and GE HealthCare
Given the investment horizon of 90 days Mitesco is expected to generate 23.55 times more return on investment than GE HealthCare. However, Mitesco is 23.55 times more volatile than GE HealthCare Technologies. It trades about 0.14 of its potential returns per unit of risk. GE HealthCare Technologies is currently generating about 0.05 per unit of risk. If you would invest 20.00 in Mitesco on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Mitesco or generate 130.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitesco vs. GE HealthCare Technologies
Performance |
| Timeline |
| Mitesco |
| GE HealthCare Techno |
Mitesco and GE HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitesco and GE HealthCare
The main advantage of trading using opposite Mitesco and GE HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitesco position performs unexpectedly, GE HealthCare 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 GE HealthCare will offset losses from the drop in GE HealthCare's long position.| Mitesco vs. GE HealthCare Technologies | Mitesco vs. Veeva Systems Class | Mitesco vs. Solventum Corp | Mitesco vs. Doximity |
| GE HealthCare vs. Profound Medical Corp | GE HealthCare vs. Si Bone | GE HealthCare vs. Nevro Corp | GE HealthCare vs. Paragon 28 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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