Correlation Between AMN Healthcare and Enzo Biochem
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Enzo Biochem 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 Enzo Biochem 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 Enzo Biochem, you can compare the effects of market volatilities on AMN Healthcare and Enzo Biochem 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 Enzo Biochem. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Enzo Biochem.
Diversification Opportunities for AMN Healthcare and Enzo Biochem
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMN and Enzo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Enzo Biochem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enzo Biochem 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 Enzo Biochem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enzo Biochem has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Enzo Biochem go up and down completely randomly.
Pair Corralation between AMN Healthcare and Enzo Biochem
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Enzo Biochem. In addition to that, AMN Healthcare is 1.58 times more volatile than Enzo Biochem. It trades about -0.07 of its total potential returns per unit of risk. Enzo Biochem is currently generating about -0.01 per unit of volatility. If you would invest 116.00 in Enzo Biochem on September 14, 2024 and sell it today you would lose (14.00) from holding Enzo Biochem or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Enzo Biochem
Performance |
| Timeline |
| AMN Healthcare Services |
| Enzo Biochem |
AMN Healthcare and Enzo Biochem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Enzo Biochem
The main advantage of trading using opposite AMN Healthcare and Enzo Biochem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Enzo Biochem 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 Enzo Biochem will offset losses from the drop in Enzo Biochem'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 |
| Enzo Biochem vs. ASGN Inc | Enzo Biochem vs. Kforce Inc | Enzo Biochem vs. Kelly Services A | Enzo Biochem vs. AMN Healthcare Services |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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