Correlation Between International Business and Nextgen Healthcare
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Nextgen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Nextgen Healthcare, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Nextgen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Nextgen Healthcare.
Diversification Opportunities for International Business and Nextgen Healthcare
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Nextgen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Nextgen Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen Healthcare and International Business 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 International Business Machines 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 International Business i.e., International Business and Nextgen Healthcare go up and down completely randomly.
Pair Corralation between International Business and Nextgen Healthcare
If you would invest 19,691 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 3,192 from holding International Business Machines or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
International Business Machine vs. Nextgen Healthcare
Performance |
| Timeline |
| International Business |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Business and Nextgen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Nextgen Healthcare
The main advantage of trading using opposite International Business and Nextgen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |