Correlation Between AMN Healthcare and MCI Onehealth

Can any of the company-specific risk be diversified away by investing in both AMN Healthcare and MCI Onehealth 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 MCI Onehealth 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 MCI Onehealth Technologies, you can compare the effects of market volatilities on AMN Healthcare and MCI Onehealth 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 MCI Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMN Healthcare and MCI Onehealth.

Diversification Opportunities for AMN Healthcare and MCI Onehealth

0.0

Correlation Coefficient

AMN Healthcare  MCI Onehealth

Pay attention - limited upside

The 3 months correlation between AMN and MCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMN Healthcare Services and MCI Onehealth Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCI Onehealth Techno 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 MCI Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCI Onehealth Techno has no effect on the direction of AMN Healthcare i.e., AMN Healthcare and MCI Onehealth go up and down completely randomly.

Pair Corralation between AMN Healthcare and MCI Onehealth

If you would invest  55.00  in MCI Onehealth Technologies on October 6, 2024 and sell it today you would earn a total of  0.00  from holding MCI Onehealth Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

AMN Healthcare Services  vs.  MCI Onehealth Technologies

AMN Healthcare Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMN Healthcare Services 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 primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

MCI Onehealth Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MCI Onehealth Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MCI Onehealth is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AMN Healthcare and MCI Onehealth

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

The idea behind AMN Healthcare Services and MCI Onehealth Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.