Correlation Between CapitaLand Investment and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment 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 CapitaLand Investment and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Investment Limited and Viemed Healthcare, you can compare the effects of market volatilities on CapitaLand Investment 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 CapitaLand Investment with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and Viemed Healthcare.
Diversification Opportunities for CapitaLand Investment and Viemed Healthcare
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CapitaLand and Viemed is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and CapitaLand Investment 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 CapitaLand Investment Limited 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 CapitaLand Investment i.e., CapitaLand Investment and Viemed Healthcare go up and down completely randomly.
Pair Corralation between CapitaLand Investment and Viemed Healthcare
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the Viemed Healthcare. But the pink sheet apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 1.16 times less risky than Viemed Healthcare. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Viemed Healthcare is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 909.00 in Viemed Healthcare on August 29, 2024 and sell it today you would lose (53.00) from holding Viemed Healthcare or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. Viemed Healthcare
Performance |
| Timeline |
| CapitaLand Investment |
| Viemed Healthcare |
CapitaLand Investment and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and Viemed Healthcare
The main advantage of trading using opposite CapitaLand Investment and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment 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.| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
| 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 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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |