Correlation Between Aehr Test and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Viemed Healthcare 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 Aehr Test and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Viemed Healthcare, you can compare the effects of market volatilities on Aehr Test and Viemed Healthcare 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 Aehr Test with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Viemed Healthcare.
Diversification Opportunities for Aehr Test and Viemed Healthcare
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aehr and Viemed is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Aehr Test 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 Aehr Test Systems are associated (or correlated) with Viemed Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viemed Healthcare has no effect on the direction of Aehr Test i.e., Aehr Test and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Aehr Test and Viemed Healthcare
Given the investment horizon of 90 days Aehr Test is expected to generate 36.45 times less return on investment than Viemed Healthcare. In addition to that, Aehr Test is 2.04 times more volatile than Viemed Healthcare. It trades about 0.0 of its total potential returns per unit of risk. Viemed Healthcare is currently generating about 0.03 per unit of volatility. If you would invest 719.00 in Viemed Healthcare on September 3, 2024 and sell it today you would earn a total of 180.00 from holding Viemed Healthcare or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Viemed Healthcare
Performance |
| Timeline |
| Aehr Test Systems |
| Viemed Healthcare |
Aehr Test and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Viemed Healthcare
The main advantage of trading using opposite Aehr Test and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Viemed Healthcare 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 Viemed Healthcare will offset losses from the drop in Viemed Healthcare's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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