Correlation Between AMN Healthcare and US Physicalrapy
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and US Physicalrapy 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 US Physicalrapy 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 US Physicalrapy, you can compare the effects of market volatilities on AMN Healthcare and US Physicalrapy 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 US Physicalrapy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and US Physicalrapy.
Diversification Opportunities for AMN Healthcare and US Physicalrapy
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMN and USPH is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and US Physicalrapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physicalrapy 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 US Physicalrapy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physicalrapy has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and US Physicalrapy go up and down completely randomly.
Pair Corralation between AMN Healthcare and US Physicalrapy
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the US Physicalrapy. In addition to that, AMN Healthcare is 1.82 times more volatile than US Physicalrapy. It trades about -0.1 of its total potential returns per unit of risk. US Physicalrapy is currently generating about 0.03 per unit of volatility. If you would invest 9,056 in US Physicalrapy on August 28, 2024 and sell it today you would earn a total of 746.00 from holding US Physicalrapy or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. US Physicalrapy
Performance |
| Timeline |
| AMN Healthcare Services |
| US Physicalrapy |
AMN Healthcare and US Physicalrapy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and US Physicalrapy
The main advantage of trading using opposite AMN Healthcare and US Physicalrapy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, US Physicalrapy 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 US Physicalrapy will offset losses from the drop in US Physicalrapy'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 |
| US Physicalrapy vs. Acadia Healthcare | US Physicalrapy vs. Tenet Healthcare | US Physicalrapy vs. HCA Holdings | US Physicalrapy vs. DaVita HealthCare Partners |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |