Correlation Between AMN Healthcare and Pro Dex
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Pro Dex 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 Pro Dex 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 Pro Dex, you can compare the effects of market volatilities on AMN Healthcare and Pro Dex 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 Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Pro Dex.
Diversification Opportunities for AMN Healthcare and Pro Dex
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMN and Pro is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Pro Dex go up and down completely randomly.
Pair Corralation between AMN Healthcare and Pro Dex
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Pro Dex. In addition to that, AMN Healthcare is 1.11 times more volatile than Pro Dex. It trades about -0.22 of its total potential returns per unit of risk. Pro Dex is currently generating about 0.37 per unit of volatility. If you would invest 3,021 in Pro Dex on August 30, 2024 and sell it today you would earn a total of 2,078 from holding Pro Dex or generate 68.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AMN Healthcare Services vs. Pro Dex
Performance |
| Timeline |
| AMN Healthcare Services |
| Pro Dex |
AMN Healthcare and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Pro Dex
The main advantage of trading using opposite AMN Healthcare and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Pro Dex 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 Pro Dex will offset losses from the drop in Pro Dex's long position.| AMN Healthcare vs. Humana Inc | AMN Healthcare vs. Cigna Corp | AMN Healthcare vs. Elevance Health | AMN Healthcare vs. Centene Corp |
| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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