Correlation Between Nextgen Healthcare and Forian

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

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

Diversification Opportunities for Nextgen Healthcare and Forian

0.0

Correlation Coefficient

Nextgen Healthcare  Forian

Pay attention - limited upside

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

Pair Corralation between Nextgen Healthcare and Forian

If you would invest  205.00  in Forian Inc on December 29, 2024 and sell it today you would lose (5.00) from holding Forian Inc or give up 2.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nextgen Healthcare  vs.  Forian Inc

Nextgen Healthcare

Risk-Adjusted Performance

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.

Forian Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Forian Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Forian may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Nextgen Healthcare and Forian

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

The idea behind Nextgen Healthcare and Forian Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.