Correlation Between Nextgen Healthcare and Veradigm
Can any of the company-specific risk be diversified away by investing in both Nextgen Healthcare and Veradigm 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 Veradigm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextgen Healthcare and Veradigm, you can compare the effects of market volatilities on Nextgen Healthcare and Veradigm 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 Veradigm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextgen Healthcare and Veradigm.
Diversification Opportunities for Nextgen Healthcare and Veradigm
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nextgen and Veradigm is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nextgen Healthcare and Veradigm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veradigm 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 Veradigm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veradigm has no effect on the direction of Nextgen Healthcare i.e., Nextgen Healthcare and Veradigm go up and down completely randomly.
Pair Corralation between Nextgen Healthcare and Veradigm
If you would invest 1,333 in Veradigm on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Veradigm or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextgen Healthcare vs. Veradigm
Performance |
| Timeline |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Veradigm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nextgen Healthcare and Veradigm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextgen Healthcare and Veradigm
The main advantage of trading using opposite Nextgen Healthcare and Veradigm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextgen Healthcare position performs unexpectedly, Veradigm 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 Veradigm will offset losses from the drop in Veradigm's long position.| Nextgen Healthcare vs. National Research Corp | Nextgen Healthcare vs. Definitive Healthcare Corp | Nextgen Healthcare vs. HealthStream | Nextgen Healthcare vs. Forian Inc |
| Veradigm vs. National Research Corp | Veradigm vs. Definitive Healthcare Corp | Veradigm vs. HealthStream | Veradigm vs. Certara |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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