Correlation Between Icad and Allscripts Hlthcare

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

Diversification Opportunities for Icad and Allscripts Hlthcare

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Icad and Allscripts is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Icad Inc and Allscripts Hlthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allscripts Hlthcare and Icad 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 Icad Inc are associated (or correlated) with Allscripts Hlthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allscripts Hlthcare has no effect on the direction of Icad i.e., Icad and Allscripts Hlthcare go up and down completely randomly.

Pair Corralation between Icad and Allscripts Hlthcare

Given the investment horizon of 90 days Icad Inc is expected to under-perform the Allscripts Hlthcare. In addition to that, Icad is 1.62 times more volatile than Allscripts Hlthcare. It trades about -0.02 of its total potential returns per unit of risk. Allscripts Hlthcare is currently generating about 0.07 per unit of volatility. If you would invest  666.00  in Allscripts Hlthcare on April 5, 2022 and sell it today you would earn a total of  850.00  from holding Allscripts Hlthcare or generate 127.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Icad Inc  vs.  Allscripts Hlthcare

 Performance (%) 
      Timeline 
Icad Inc 
Icad Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Icad Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Icad is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Structure and Payout Changes

Last Split Factor
1:5
Last Split Date
2012-08-16

Icad Price Channel

Allscripts Hlthcare 
Allscripts Performance
0 of 100
Over the last 90 days Allscripts Hlthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Dividend Date
2008-10-17
Ex Dividend Date
2008-10-07

Allscripts Price Channel

Icad and Allscripts Hlthcare Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Icad and Allscripts Hlthcare

The main advantage of trading using opposite Icad and Allscripts Hlthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Allscripts Hlthcare 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 Allscripts Hlthcare will offset losses from the drop in Allscripts Hlthcare's long position.
The idea behind Icad Inc and Allscripts Hlthcare 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.
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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