Correlation Between AMN Healthcare and Sienna Senior
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Sienna Senior 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 Sienna Senior 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 Sienna Senior Living, you can compare the effects of market volatilities on AMN Healthcare and Sienna Senior 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 Sienna Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Sienna Senior.
Diversification Opportunities for AMN Healthcare and Sienna Senior
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMN and Sienna is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Sienna Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sienna Senior Living 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 Sienna Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sienna Senior Living has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Sienna Senior go up and down completely randomly.
Pair Corralation between AMN Healthcare and Sienna Senior
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Sienna Senior. In addition to that, AMN Healthcare is 1.99 times more volatile than Sienna Senior Living. It trades about -0.08 of its total potential returns per unit of risk. Sienna Senior Living is currently generating about 0.13 per unit of volatility. If you would invest 752.00 in Sienna Senior Living on September 4, 2024 and sell it today you would earn a total of 436.00 from holding Sienna Senior Living or generate 57.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.16% |
| Values | Daily Returns |
AMN Healthcare Services vs. Sienna Senior Living
Performance |
| Timeline |
| AMN Healthcare Services |
| Sienna Senior Living |
AMN Healthcare and Sienna Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Sienna Senior
The main advantage of trading using opposite AMN Healthcare and Sienna Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Sienna Senior 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 Sienna Senior will offset losses from the drop in Sienna Senior's long position.| AMN Healthcare vs. Humana Inc | AMN Healthcare vs. Cigna Corp | AMN Healthcare vs. Elevance Health | AMN Healthcare vs. Centene Corp |
| Sienna Senior vs. Medical Facilities | Sienna Senior vs. Regional Health Properties | Sienna Senior vs. WashTec AG | Sienna Senior 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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