Correlation Between Lion One and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Viemed Healthcare, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Viemed Healthcare.
Diversification Opportunities for Lion One and Viemed Healthcare
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lion and Viemed is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Lion One and Viemed Healthcare
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Viemed Healthcare. In addition to that, Lion One is 1.51 times more volatile than Viemed Healthcare. It trades about -0.04 of its total potential returns per unit of risk. Viemed Healthcare is currently generating about 0.0 per unit of volatility. If you would invest 959.00 in Viemed Healthcare on August 31, 2024 and sell it today you would lose (92.00) from holding Viemed Healthcare or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Lion One Metals vs. Viemed Healthcare
Performance |
| Timeline |
| Lion One Metals |
| Viemed Healthcare |
Lion One and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Viemed Healthcare
The main advantage of trading using opposite Lion One and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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