Correlation Between AMN Healthcare and Ainos
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Ainos 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 AMN Healthcare and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMN Healthcare Services and Ainos Inc, you can compare the effects of market volatilities on AMN Healthcare and Ainos 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 AMN Healthcare with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Ainos.
Diversification Opportunities for AMN Healthcare and Ainos
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMN and Ainos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and AMN 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 AMN Healthcare Services are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Ainos go up and down completely randomly.
Pair Corralation between AMN Healthcare and Ainos
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Ainos. But the stock apears to be less risky and, when comparing its historical volatility, AMN Healthcare Services is 2.67 times less risky than Ainos. The stock trades about -0.1 of its potential returns per unit of risk. The Ainos Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 345.00 in Ainos Inc on August 28, 2024 and sell it today you would lose (300.00) from holding Ainos Inc or give up 86.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Ainos Inc
Performance |
| Timeline |
| AMN Healthcare Services |
| Ainos Inc |
AMN Healthcare and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Ainos
The main advantage of trading using opposite AMN Healthcare and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.| AMN Healthcare vs. Option Care Health | AMN Healthcare vs. Addus HomeCare | AMN Healthcare vs. Acadia Healthcare | AMN Healthcare vs. Encompass Health Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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