Correlation Between Concord Medical and Amn Healthcare

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Can any of the company-specific risk be diversified away by investing in both Concord Medical and Amn 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 Concord Medical and Amn Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Medical Services and Amn Healthcare Services, you can compare the effects of market volatilities on Concord Medical and Amn 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 Concord Medical with a short position of Amn Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Medical and Amn Healthcare.

Diversification Opportunities for Concord Medical and Amn Healthcare

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Concord and Amn Healthcare is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Concord Medical Services and Amn Healthcare Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amn Healthcare Services and Concord Medical 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 Concord Medical Services are associated (or correlated) with Amn Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amn Healthcare Services has no effect on the direction of Concord Medical i.e., Concord Medical and Amn Healthcare go up and down completely randomly.

Pair Corralation between Concord Medical and Amn Healthcare

Considering the 90-day investment horizon Concord Medical Services is expected to generate 1.91 times more return on investment than Amn Healthcare. However, Concord Medical is 1.91 times more volatile than Amn Healthcare Services. It trades about 0.03 of its potential returns per unit of risk. Amn Healthcare Services is currently generating about 0.02 per unit of risk. If you would invest  178.00  in Concord Medical Services on July 1, 2022 and sell it today you would lose (1.00)  from holding Concord Medical Services or give up 0.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Concord Medical Services  vs.  Amn Healthcare Services

 Performance (%) 
       Timeline  
Concord Medical Services 
Concord Performance
0 of 100
Over the last 90 days Concord Medical Services has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady fundamental indicators, Concord Medical is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Concord Price Channel

Amn Healthcare Services 
Amn Healthcare Performance
0 of 100
Over the last 90 days Amn Healthcare Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Amn Healthcare is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Amn Healthcare Price Channel

Concord Medical and Amn Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Concord Medical and Amn Healthcare

The main advantage of trading using opposite Concord Medical and Amn Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Medical position performs unexpectedly, Amn 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 Amn Healthcare will offset losses from the drop in Amn Healthcare's long position.
Concord Medical vs. Amazon Inc
The idea behind Concord Medical Services and Amn Healthcare Services 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.
Amn Healthcare vs. Amazon Inc
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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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