Correlation Between AMN Healthcare and GeneDx Holdings
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and GeneDx Holdings 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 GeneDx Holdings 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 GeneDx Holdings Corp, you can compare the effects of market volatilities on AMN Healthcare and GeneDx Holdings 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 GeneDx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and GeneDx Holdings.
Diversification Opportunities for AMN Healthcare and GeneDx Holdings
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMN and GeneDx is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and GeneDx Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneDx Holdings Corp 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 GeneDx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneDx Holdings Corp has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and GeneDx Holdings go up and down completely randomly.
Pair Corralation between AMN Healthcare and GeneDx Holdings
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the GeneDx Holdings. But the stock apears to be less risky and, when comparing its historical volatility, AMN Healthcare Services is 1.55 times less risky than GeneDx Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The GeneDx Holdings Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,145 in GeneDx Holdings Corp on August 30, 2024 and sell it today you would earn a total of 5,798 from holding GeneDx Holdings Corp or generate 270.3% 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. GeneDx Holdings Corp
Performance |
| Timeline |
| AMN Healthcare Services |
| GeneDx Holdings Corp |
AMN Healthcare and GeneDx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and GeneDx Holdings
The main advantage of trading using opposite AMN Healthcare and GeneDx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, GeneDx Holdings 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 GeneDx Holdings will offset losses from the drop in GeneDx Holdings' long position.| AMN Healthcare vs. Humana Inc | AMN Healthcare vs. Cigna Corp | AMN Healthcare vs. Elevance Health | AMN Healthcare vs. Centene Corp |
| GeneDx Holdings vs. Privia Health Group | GeneDx Holdings vs. HealthStream | GeneDx Holdings vs. Certara | GeneDx Holdings vs. National Research Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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