Correlation Between Varex Imaging and Amedisys
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and Amedisys 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 Varex Imaging and Amedisys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Amedisys, you can compare the effects of market volatilities on Varex Imaging and Amedisys 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 Varex Imaging with a short position of Amedisys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Amedisys.
Diversification Opportunities for Varex Imaging and Amedisys
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Varex and Amedisys is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Amedisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedisys and Varex Imaging 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 Varex Imaging Corp are associated (or correlated) with Amedisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedisys has no effect on the direction of Varex Imaging i.e., Varex Imaging and Amedisys go up and down completely randomly.
Pair Corralation between Varex Imaging and Amedisys
Given the investment horizon of 90 days Varex Imaging Corp is expected to generate 2.36 times more return on investment than Amedisys. However, Varex Imaging is 2.36 times more volatile than Amedisys. It trades about 0.42 of its potential returns per unit of risk. Amedisys is currently generating about -0.21 per unit of risk. If you would invest 1,315 in Varex Imaging Corp on August 27, 2024 and sell it today you would earn a total of 349.00 from holding Varex Imaging Corp or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Amedisys
Performance |
| Timeline |
| Varex Imaging Corp |
| Amedisys |
Varex Imaging and Amedisys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Amedisys
The main advantage of trading using opposite Varex Imaging and Amedisys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, Amedisys 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 Amedisys will offset losses from the drop in Amedisys' long position.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| Amedisys vs. Acadia Healthcare | Amedisys vs. Addus HomeCare | Amedisys vs. Encompass Health Corp | Amedisys vs. The Ensign Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |