Correlation Between AMN Healthcare and Helius Medical
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Helius Medical 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 Helius Medical 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 Helius Medical Technologies, you can compare the effects of market volatilities on AMN Healthcare and Helius Medical 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 Helius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Helius Medical.
Diversification Opportunities for AMN Healthcare and Helius Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMN and Helius is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn 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 Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Helius Medical go up and down completely randomly.
Pair Corralation between AMN Healthcare and Helius Medical
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Helius Medical. In addition to that, AMN Healthcare is 1.3 times more volatile than Helius Medical Technologies. It trades about -0.21 of its total potential returns per unit of risk. Helius Medical Technologies is currently generating about 0.04 per unit of volatility. If you would invest 48.00 in Helius Medical Technologies on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Helius Medical Technologies or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Helius Medical Technologies
Performance |
| Timeline |
| AMN Healthcare Services |
| Helius Medical Techn |
AMN Healthcare and Helius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Helius Medical
The main advantage of trading using opposite AMN Healthcare and Helius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Helius Medical 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 Helius Medical will offset losses from the drop in Helius Medical'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 |
| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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