Correlation Between OPTIMIZERx Corp and GE HealthCare
Can any of the company-specific risk be diversified away by investing in both OPTIMIZERx Corp 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 OPTIMIZERx Corp and GE HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPTIMIZERx Corp and GE HealthCare Technologies, you can compare the effects of market volatilities on OPTIMIZERx Corp 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 OPTIMIZERx Corp with a short position of GE HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPTIMIZERx Corp and GE HealthCare.
Diversification Opportunities for OPTIMIZERx Corp and GE HealthCare
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OPTIMIZERx and GEHC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OPTIMIZERx Corp 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 OPTIMIZERx Corp 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 OPTIMIZERx Corp 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 OPTIMIZERx Corp i.e., OPTIMIZERx Corp and GE HealthCare go up and down completely randomly.
Pair Corralation between OPTIMIZERx Corp and GE HealthCare
Given the investment horizon of 90 days OPTIMIZERx Corp is expected to generate 6.52 times more return on investment than GE HealthCare. However, OPTIMIZERx Corp is 6.52 times more volatile than GE HealthCare Technologies. It trades about 0.04 of its potential returns per unit of risk. GE HealthCare Technologies is currently generating about -0.07 per unit of risk. If you would invest 552.00 in OPTIMIZERx Corp on August 30, 2024 and sell it today you would lose (19.00) from holding OPTIMIZERx Corp or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPTIMIZERx Corp vs. GE HealthCare Technologies
Performance |
| Timeline |
| OPTIMIZERx Corp |
| GE HealthCare Techno |
OPTIMIZERx Corp and GE HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPTIMIZERx Corp and GE HealthCare
The main advantage of trading using opposite OPTIMIZERx Corp and GE HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPTIMIZERx Corp 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.| OPTIMIZERx Corp vs. Forian Inc | OPTIMIZERx Corp vs. Streamline Health Solutions | OPTIMIZERx Corp vs. Aclarion | OPTIMIZERx Corp vs. HealthStream |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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