Correlation Between Definitive Healthcare and Nextgen Healthcare
Can any of the company-specific risk be diversified away by investing in both Definitive Healthcare and Nextgen Healthcare 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 Definitive Healthcare and Nextgen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Definitive Healthcare Corp and Nextgen Healthcare, you can compare the effects of market volatilities on Definitive Healthcare and Nextgen Healthcare 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 Definitive Healthcare with a short position of Nextgen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Definitive Healthcare and Nextgen Healthcare.
Diversification Opportunities for Definitive Healthcare and Nextgen Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Definitive and Nextgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Definitive Healthcare Corp and Nextgen Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen Healthcare and Definitive 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 Definitive Healthcare Corp are associated (or correlated) with Nextgen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen Healthcare has no effect on the direction of Definitive Healthcare i.e., Definitive Healthcare and Nextgen Healthcare go up and down completely randomly.
Pair Corralation between Definitive Healthcare and Nextgen Healthcare
If you would invest 434.00 in Definitive Healthcare Corp on November 1, 2024 and sell it today you would earn a total of 59.00 from holding Definitive Healthcare Corp or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.23% |
| Values | Daily Returns |
Definitive Healthcare Corp vs. Nextgen Healthcare
Performance |
| Timeline |
| Definitive Healthcare |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Definitive Healthcare and Nextgen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Definitive Healthcare and Nextgen Healthcare
The main advantage of trading using opposite Definitive Healthcare and Nextgen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Definitive Healthcare position performs unexpectedly, Nextgen Healthcare 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 Nextgen Healthcare will offset losses from the drop in Nextgen Healthcare's long position.| Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Evolent Health | Definitive Healthcare vs. Simulations Plus | Definitive Healthcare vs. Privia Health Group |
| Nextgen Healthcare vs. National Research Corp | Nextgen Healthcare vs. Definitive Healthcare Corp | Nextgen Healthcare vs. HealthStream | Nextgen Healthcare vs. Forian Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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