Correlation Between KWG Group and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both KWG Group 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 KWG Group and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KWG Group Holdings and Viemed Healthcare, you can compare the effects of market volatilities on KWG Group 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 KWG Group with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KWG Group and Viemed Healthcare.
Diversification Opportunities for KWG Group and Viemed Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KWG and Viemed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KWG Group Holdings and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and KWG Group 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 KWG Group Holdings 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 KWG Group i.e., KWG Group and Viemed Healthcare go up and down completely randomly.
Pair Corralation between KWG Group and Viemed Healthcare
If you would invest 853.00 in Viemed Healthcare on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Viemed Healthcare or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
KWG Group Holdings vs. Viemed Healthcare
Performance |
| Timeline |
| KWG Group Holdings |
| Viemed Healthcare |
KWG Group and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KWG Group and Viemed Healthcare
The main advantage of trading using opposite KWG Group and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KWG Group 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.| KWG Group vs. China Aircraft Leasing | KWG Group vs. Luxfer Holdings PLC | KWG Group vs. United Rentals | KWG Group vs. Air Lease |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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