Correlation Between American Shared and OneMedNet Corp

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

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

Diversification Opportunities for American Shared and OneMedNet Corp

-0.32

Correlation Coefficient

American Shared  OneMedNet Corp

Very good diversification

The 3 months correlation between American and OneMedNet is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Shared Hospital and OneMedNet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMedNet Corp and American Shared 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 American Shared Hospital are associated (or correlated) with OneMedNet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMedNet Corp has no effect on the direction of American Shared i.e., American Shared and OneMedNet Corp go up and down completely randomly.

Pair Corralation between American Shared and OneMedNet Corp

Considering the 90-day investment horizon American Shared is expected to generate 18.67 times less return on investment than OneMedNet Corp. But when comparing it to its historical volatility, American Shared Hospital is 10.67 times less risky than OneMedNet Corp. It trades about 0.07 of its potential returns per unit of risk. OneMedNet Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3.39  in OneMedNet Corp on September 24, 2024 and sell it today you would earn a total of  0.62  from holding OneMedNet Corp or generate 18.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	67.19%
Values	Daily Returns

American Shared Hospital  vs.  OneMedNet Corp

American Shared Hospital

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Shared Hospital are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent primary indicators, American Shared may actually be approaching a critical reversion point that can send shares even higher in January 2025.

OneMedNet Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OneMedNet Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, OneMedNet Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Shared and OneMedNet Corp

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

The idea behind American Shared Hospital and OneMedNet Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.