Correlation Between AMN Healthcare and Capital Senior
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Capital Senior 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 AMN Healthcare and Capital Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMN Healthcare Services and Capital Senior Living, you can compare the effects of market volatilities on AMN Healthcare and Capital Senior 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 AMN Healthcare with a short position of Capital Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Capital Senior.
Diversification Opportunities for AMN Healthcare and Capital Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMN and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Capital Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Senior Living and AMN 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 AMN Healthcare Services are associated (or correlated) with Capital Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Senior Living has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Capital Senior go up and down completely randomly.
Pair Corralation between AMN Healthcare and Capital Senior
If you would invest (100.00) in Capital Senior Living on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Capital Senior Living or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Capital Senior Living
Performance |
| Timeline |
| AMN Healthcare Services |
| Capital Senior Living |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMN Healthcare and Capital Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Capital Senior
The main advantage of trading using opposite AMN Healthcare and Capital Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Capital Senior 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 Capital Senior will offset losses from the drop in Capital Senior's long position.| AMN Healthcare vs. Option Care Health | AMN Healthcare vs. Addus HomeCare | AMN Healthcare vs. Acadia Healthcare | AMN Healthcare vs. Encompass Health Corp |
| Capital Senior vs. JD Sports Fashion | Capital Senior vs. Funko Inc | Capital Senior vs. SunOpta | Capital Senior vs. Asbury Automotive 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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