Correlation Between Nextgen Healthcare and Aclarion

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

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

Diversification Opportunities for Nextgen Healthcare and Aclarion

0.08

Correlation Coefficient

Nextgen Healthcare  Aclarion

Significant diversification

The 3 months correlation between Nextgen and Aclarion is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nextgen Healthcare and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and Nextgen 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 Nextgen Healthcare are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Nextgen Healthcare i.e., Nextgen Healthcare and Aclarion go up and down completely randomly.

Pair Corralation between Nextgen Healthcare and Aclarion

If you would invest  3.00  in Aclarion on September 12, 2024 and sell it today you would lose (0.25) from holding Aclarion or give up 8.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	2.56%
Values	Daily Returns

Nextgen Healthcare  vs.  Aclarion

Nextgen Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nextgen Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Nextgen Healthcare is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Aclarion

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating basic indicators, Aclarion showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nextgen Healthcare and Aclarion

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

The idea behind Nextgen Healthcare and Aclarion 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.