Correlation Between AMN Healthcare and Macys
Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and Macys 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 Macys 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 Macys Inc, you can compare the effects of market volatilities on AMN Healthcare and Macys 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 Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and Macys.
Diversification Opportunities for AMN Healthcare and Macys
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMN and Macys is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and Macys go up and down completely randomly.
Pair Corralation between AMN Healthcare and Macys
Considering the 90-day investment horizon AMN Healthcare Services is expected to under-perform the Macys. But the stock apears to be less risky and, when comparing its historical volatility, AMN Healthcare Services is 1.27 times less risky than Macys. The stock trades about -0.02 of its potential returns per unit of risk. The Macys Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,305 in Macys Inc on January 20, 2024 and sell it today you would lose (452.00) from holding Macys Inc or give up 19.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMN Healthcare Services vs. Macys Inc
Performance |
| Timeline |
| AMN Healthcare Services |
| Macys Inc |
AMN Healthcare and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMN Healthcare and Macys
The main advantage of trading using opposite AMN Healthcare and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMN Healthcare position performs unexpectedly, Macys 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 Macys will offset losses from the drop in Macys' long position.| AMN Healthcare vs. Certara | AMN Healthcare vs. HealthStream | AMN Healthcare vs. Evolent Health | AMN Healthcare vs. Streamline Health Solutions |
| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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