Correlation Between Henry Schein and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both Henry Schein and AmerisourceBergen 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 Henry Schein and AmerisourceBergen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and AmerisourceBergen, you can compare the effects of market volatilities on Henry Schein and AmerisourceBergen 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 Henry Schein with a short position of AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and AmerisourceBergen.
Diversification Opportunities for Henry Schein and AmerisourceBergen
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henry and AmerisourceBergen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen and Henry Schein 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 Henry Schein are associated (or correlated) with AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of Henry Schein i.e., Henry Schein and AmerisourceBergen go up and down completely randomly.
Pair Corralation between Henry Schein and AmerisourceBergen
Given the investment horizon of 90 days Henry Schein is expected to under-perform the AmerisourceBergen. In addition to that, Henry Schein is 1.37 times more volatile than AmerisourceBergen. It trades about -0.02 of its total potential returns per unit of risk. AmerisourceBergen is currently generating about 0.09 per unit of volatility. If you would invest 17,061 in AmerisourceBergen on January 19, 2024 and sell it today you would earn a total of 937.00 from holding AmerisourceBergen or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.96% |
| Values | Daily Returns |
Henry Schein vs. AmerisourceBergen
Performance |
| Timeline |
| Henry Schein |
| AmerisourceBergen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Henry Schein and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henry Schein and AmerisourceBergen
The main advantage of trading using opposite Henry Schein and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen's long position.The idea behind Henry Schein and AmerisourceBergen 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.| AmerisourceBergen vs. Cardinal Health | AmerisourceBergen vs. Henry Schein | AmerisourceBergen vs. Owens Minor | AmerisourceBergen vs. Patterson Companies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |