Correlation Between AMN Healthcare and Artivion
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Artivion 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 Artivion 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 Artivion, you can compare the effects of market volatilities on AMN Healthcare and Artivion 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 Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Artivion.
Diversification Opportunities for AMN Healthcare and Artivion
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMN and Artivion is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion 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 Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Artivion go up and down completely randomly.
Pair Corralation between AMN Healthcare and Artivion
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Artivion. In addition to that, AMN Healthcare is 1.37 times more volatile than Artivion. It trades about -0.1 of its total potential returns per unit of risk. Artivion is currently generating about 0.08 per unit of volatility. If you would invest 1,549 in Artivion on August 31, 2024 and sell it today you would earn a total of 1,403 from holding Artivion or generate 90.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Artivion
Performance |
| Timeline |
| AMN Healthcare Services |
| Artivion |
AMN Healthcare and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Artivion
The main advantage of trading using opposite AMN Healthcare and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| AMN Healthcare vs. Option Care Health | AMN Healthcare vs. Addus HomeCare | AMN Healthcare vs. Acadia Healthcare | AMN Healthcare vs. Encompass Health Corp |
| Artivion vs. Abbott Laboratories | Artivion vs. Medtronic PLC | Artivion vs. Edwards Lifesciences Corp | Artivion vs. ZimVie 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 the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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