Correlation Between Atai Life and General Electric

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Atai Life and General Electric 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 Atai Life and General Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atai Life Sciences and General Electric, you can compare the effects of market volatilities on Atai Life and General Electric 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 Atai Life with a short position of General Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atai Life and General Electric.

Diversification Opportunities for Atai Life and General Electric

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Atai Life and General is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Atai Life Sciences and General Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Electric and Atai Life 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 Atai Life Sciences are associated (or correlated) with General Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Electric has no effect on the direction of Atai Life i.e., Atai Life and General Electric go up and down completely randomly.

Pair Corralation between Atai Life and General Electric

Given the investment horizon of 90 days Atai Life Sciences is expected to under-perform the General Electric. In addition to that, Atai Life is 2.18 times more volatile than General Electric. It trades about -0.09 of its total potential returns per unit of risk. General Electric is currently generating about 0.02 per unit of volatility. If you would invest  5,789  in General Electric on July 9, 2022 and sell it today you would earn a total of  833.00  from holding General Electric or generate 14.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy66.33%
ValuesDaily Returns

Atai Life Sciences  vs.  General Electric

 Performance (%) 
       Timeline  
Atai Life Sciences 
Atai Life Performance
0 of 100
Over the last 90 days Atai Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Atai Life Price Channel

General Electric 
General Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in General Electric are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, General Electric may actually be approaching a critical reversion point that can send shares even higher in November 2022.

General Price Channel

Atai Life and General Electric Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atai Life and General Electric

The main advantage of trading using opposite Atai Life and General Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atai Life position performs unexpectedly, General Electric 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 General Electric will offset losses from the drop in General Electric's long position.
Atai Life vs. Thai Beverage Public
Atai Life vs. Diageo Plc ADR
Atai Life vs. Diageo Plc New
Atai Life vs. REMY COINTREAU
The idea behind Atai Life Sciences and General Electric pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
General Electric vs. Amazon Inc
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go