Correlation Between Amedisys and Boot Barn

Can any of the company-specific risk be diversified away by investing in both Amedisys and Boot Barn 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 Amedisys and Boot Barn into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amedisys and Boot Barn Holdings, you can compare the effects of market volatilities on Amedisys and Boot Barn 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 Amedisys with a short position of Boot Barn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedisys and Boot Barn.

Diversification Opportunities for Amedisys and Boot Barn

0.45

Correlation Coefficient

Amedisys  Boot Barn

Very weak diversification

The 3 months correlation between Amedisys and Boot is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amedisys and Boot Barn Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boot Barn Holdings and Amedisys 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 Amedisys are associated (or correlated) with Boot Barn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boot Barn Holdings has no effect on the direction of Amedisys i.e., Amedisys and Boot Barn go up and down completely randomly.

Pair Corralation between Amedisys and Boot Barn

Given the investment horizon of 90 days Amedisys is expected to generate 1.71 times less return on investment than Boot Barn. But when comparing it to its historical volatility, Amedisys is 3.44 times less risky than Boot Barn. It trades about 0.17 of its potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  15,671  in Boot Barn Holdings on May 16, 2025 and sell it today you would earn a total of  1,619  from holding Boot Barn Holdings or generate 10.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Amedisys  vs.  Boot Barn Holdings

Amedisys

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amedisys are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Amedisys may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Boot Barn Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Boot Barn Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Boot Barn may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Amedisys and Boot Barn

The main advantage of trading using opposite Amedisys and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedisys position performs unexpectedly, Boot Barn 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 Boot Barn will offset losses from the drop in Boot Barn's long position.

The idea behind Amedisys and Boot Barn Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.