Correlation Between Canlan Ice and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Viemed Healthcare, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Viemed Healthcare.
Diversification Opportunities for Canlan Ice and Viemed Healthcare
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Canlan and Viemed is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Canlan Ice and Viemed Healthcare
If you would invest 297.00 in Canlan Ice Sports on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Viemed Healthcare
Performance |
| Timeline |
| Canlan Ice Sports |
| Viemed Healthcare |
Canlan Ice and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Viemed Healthcare
The main advantage of trading using opposite Canlan Ice and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. HUMANA INC | Canlan Ice vs. Aquagold International | Canlan Ice vs. Barloworld Ltd ADR | Canlan Ice vs. Morningstar Unconstrained Allocation |
| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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