Correlation Between AMN Healthcare and Semler Scientific
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Semler Scientific 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 Semler Scientific 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 Semler Scientific, you can compare the effects of market volatilities on AMN Healthcare and Semler Scientific 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 Semler Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Semler Scientific.
Diversification Opportunities for AMN Healthcare and Semler Scientific
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMN and Semler is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Semler Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semler Scientific 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 Semler Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semler Scientific has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Semler Scientific go up and down completely randomly.
Pair Corralation between AMN Healthcare and Semler Scientific
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Semler Scientific. But the stock apears to be less risky and, when comparing its historical volatility, AMN Healthcare Services is 1.49 times less risky than Semler Scientific. The stock trades about -0.1 of its potential returns per unit of risk. The Semler Scientific is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,526 in Semler Scientific on August 28, 2024 and sell it today you would earn a total of 3,597 from holding Semler Scientific or generate 142.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Semler Scientific
Performance |
| Timeline |
| AMN Healthcare Services |
| Semler Scientific |
AMN Healthcare and Semler Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Semler Scientific
The main advantage of trading using opposite AMN Healthcare and Semler Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Semler Scientific 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 Semler Scientific will offset losses from the drop in Semler Scientific'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 |
| Semler Scientific vs. CVRx Inc | Semler Scientific vs. SurModics | Semler Scientific vs. Pulmonx Corp | Semler Scientific vs. Orthofix Medical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |