Correlation Between AMN Healthcare and Aspira Womens
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Aspira Womens 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 Aspira Womens 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 Aspira Womens Health, you can compare the effects of market volatilities on AMN Healthcare and Aspira Womens 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 Aspira Womens. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Aspira Womens.
Diversification Opportunities for AMN Healthcare and Aspira Womens
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMN and Aspira is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Aspira Womens Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspira Womens Health 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 Aspira Womens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspira Womens Health has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Aspira Womens go up and down completely randomly.
Pair Corralation between AMN Healthcare and Aspira Womens
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Aspira Womens. In addition to that, AMN Healthcare is 2.91 times more volatile than Aspira Womens Health. It trades about -0.2 of its total potential returns per unit of risk. Aspira Womens Health is currently generating about -0.39 per unit of volatility. If you would invest 94.00 in Aspira Womens Health on August 28, 2024 and sell it today you would lose (19.00) from holding Aspira Womens Health or give up 20.21% 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. Aspira Womens Health
Performance |
| Timeline |
| AMN Healthcare Services |
| Aspira Womens Health |
AMN Healthcare and Aspira Womens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Aspira Womens
The main advantage of trading using opposite AMN Healthcare and Aspira Womens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Aspira Womens 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 Aspira Womens will offset losses from the drop in Aspira Womens' long position.| AMN Healthcare vs. Option Care Health | AMN Healthcare vs. Addus HomeCare | AMN Healthcare vs. Acadia Healthcare | AMN Healthcare vs. Encompass Health Corp |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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