Correlation Between Nextgen Healthcare and NetraMark Holdings
Can any of the company-specific risk be diversified away by investing in both Nextgen Healthcare and NetraMark 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 Nextgen Healthcare and NetraMark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextgen Healthcare and NetraMark Holdings, you can compare the effects of market volatilities on Nextgen Healthcare and NetraMark 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 Nextgen Healthcare with a short position of NetraMark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextgen Healthcare and NetraMark Holdings.
Diversification Opportunities for Nextgen Healthcare and NetraMark Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nextgen and NetraMark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nextgen Healthcare and NetraMark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetraMark Holdings and Nextgen 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 Nextgen Healthcare are associated (or correlated) with NetraMark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetraMark Holdings has no effect on the direction of Nextgen Healthcare i.e., Nextgen Healthcare and NetraMark Holdings go up and down completely randomly.
Pair Corralation between Nextgen Healthcare and NetraMark Holdings
If you would invest 57.00 in NetraMark Holdings on November 30, 2024 and sell it today you would earn a total of 42.00 from holding NetraMark Holdings or generate 73.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Nextgen Healthcare vs. NetraMark Holdings
Performance |
Timeline |
Nextgen Healthcare |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
NetraMark Holdings |
Nextgen Healthcare and NetraMark Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nextgen Healthcare and NetraMark Holdings
The main advantage of trading using opposite Nextgen Healthcare and NetraMark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextgen Healthcare position performs unexpectedly, NetraMark 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 NetraMark Holdings will offset losses from the drop in NetraMark Holdings' long position.Nextgen Healthcare vs. National Research Corp | ||
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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