Correlation Between AMN Healthcare and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and JIN MEDICAL 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 JIN MEDICAL 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 JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on AMN Healthcare and JIN MEDICAL 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 JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and JIN MEDICAL.
Diversification Opportunities for AMN Healthcare and JIN MEDICAL
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMN and JIN is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL 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 JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and JIN MEDICAL go up and down completely randomly.
Pair Corralation between AMN Healthcare and JIN MEDICAL
Considering the 90-day investment horizon AMN Healthcare Services is expected to generate 1.1 times more return on investment than JIN MEDICAL. However, AMN Healthcare is 1.1 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about -0.2 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.45 per unit of risk. If you would invest 3,942 in AMN Healthcare Services on August 31, 2024 and sell it today you would lose (1,313) from holding AMN Healthcare Services or give up 33.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| AMN Healthcare Services |
| JIN MEDICAL INTERNATIONAL |
AMN Healthcare and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and JIN MEDICAL
The main advantage of trading using opposite AMN Healthcare and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, JIN MEDICAL 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 JIN MEDICAL will offset losses from the drop in JIN MEDICAL'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 |
| JIN MEDICAL vs. Corporacion America Airports | JIN MEDICAL vs. Cadence Design Systems | JIN MEDICAL vs. Rackspace Technology | JIN MEDICAL vs. Porvair plc |
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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