Correlation Between NetraMark Holdings and Nextgen Healthcare

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

Diversification Opportunities for NetraMark Holdings and Nextgen Healthcare

NetraMarkNextgenDiversified AwayNetraMarkNextgenDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between NetraMark and Nextgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NetraMark Holdings and Nextgen Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen Healthcare and NetraMark Holdings 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 NetraMark Holdings are associated (or correlated) with Nextgen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen Healthcare has no effect on the direction of NetraMark Holdings i.e., NetraMark Holdings and Nextgen Healthcare go up and down completely randomly.

Pair Corralation between NetraMark Holdings and Nextgen Healthcare

If you would invest  57.00  in NetraMark Holdings on November 30, 2024 and sell it today you would earn a total of  42.00  from holding NetraMark Holdings or generate 73.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

NetraMark Holdings  vs.  Nextgen Healthcare

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 20406080100120
JavaScript chart by amCharts 3.21.15AINMF NXGN
       Timeline  
NetraMark Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in NetraMark Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent primary indicators, NetraMark Holdings reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb0.60.70.80.911.11.2
Nextgen Healthcare 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Nextgen Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Nextgen Healthcare is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

NetraMark Holdings and Nextgen Healthcare Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-26.79-20.06-13.34-6.610.07.2114.5421.8829.21 0.0010.0020.0030.0040.005
JavaScript chart by amCharts 3.21.15AINMF NXGN
       Returns  

Pair Trading with NetraMark Holdings and Nextgen Healthcare

The main advantage of trading using opposite NetraMark Holdings and Nextgen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetraMark Holdings position performs unexpectedly, Nextgen 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 Nextgen Healthcare will offset losses from the drop in Nextgen Healthcare's long position.
The idea behind NetraMark Holdings and Nextgen Healthcare 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.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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