Correlation Between AmerisourceBergen and Zynex

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

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

Diversification Opportunities for AmerisourceBergen and Zynex

0.55

Correlation Coefficient

AmerisourceBergen  Zynex

Very weak diversification

The 3 months correlation between AmerisourceBergen and Zynex is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AmerisourceBergen and Zynex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zynex Inc and AmerisourceBergen 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 AmerisourceBergen are associated (or correlated) with Zynex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zynex Inc has no effect on the direction of AmerisourceBergen i.e., AmerisourceBergen and Zynex go up and down completely randomly.

Pair Corralation between AmerisourceBergen and Zynex

If you would invest  786.00  in Zynex Inc on August 30, 2024 and sell it today you would earn a total of  49.00  from holding Zynex Inc or generate 6.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

AmerisourceBergen  vs.  Zynex Inc

AmerisourceBergen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AmerisourceBergen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, AmerisourceBergen is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Zynex Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Zynex Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Zynex may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with AmerisourceBergen and Zynex

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

The idea behind AmerisourceBergen and Zynex 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.