Correlation Between Nextgen Healthcare and EWellness Healthcare
Can any of the company-specific risk be diversified away by investing in both Nextgen Healthcare and EWellness 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 Nextgen Healthcare and EWellness Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextgen Healthcare and eWellness Healthcare Corp, you can compare the effects of market volatilities on Nextgen Healthcare and EWellness 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 Nextgen Healthcare with a short position of EWellness Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextgen Healthcare and EWellness Healthcare.
Diversification Opportunities for Nextgen Healthcare and EWellness Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nextgen and EWellness is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nextgen Healthcare and eWellness Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWellness Healthcare Corp 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 EWellness Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWellness Healthcare Corp has no effect on the direction of Nextgen Healthcare i.e., Nextgen Healthcare and EWellness Healthcare go up and down completely randomly.
Pair Corralation between Nextgen Healthcare and EWellness Healthcare
If you would invest 0.00 in eWellness Healthcare Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding eWellness Healthcare Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nextgen Healthcare vs. eWellness Healthcare Corp
Performance |
| Timeline |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eWellness Healthcare Corp |
Nextgen Healthcare and EWellness Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextgen Healthcare and EWellness Healthcare
The main advantage of trading using opposite Nextgen Healthcare and EWellness Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextgen Healthcare position performs unexpectedly, EWellness 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 EWellness Healthcare will offset losses from the drop in EWellness Healthcare's long position.| Nextgen Healthcare vs. National Research Corp | Nextgen Healthcare vs. Definitive Healthcare Corp | Nextgen Healthcare vs. HealthStream | Nextgen Healthcare vs. Forian Inc |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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