Correlation Between Sealed Air and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Sealed Air 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 Sealed Air and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and Viemed Healthcare, you can compare the effects of market volatilities on Sealed Air 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 Sealed Air with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and Viemed Healthcare.
Diversification Opportunities for Sealed Air and Viemed Healthcare
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sealed and Viemed is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Sealed Air 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 Sealed Air 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 Sealed Air i.e., Sealed Air and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Sealed Air and Viemed Healthcare
Considering the 90-day investment horizon Sealed Air is expected to generate 1.5 times less return on investment than Viemed Healthcare. But when comparing it to its historical volatility, Sealed Air is 1.35 times less risky than Viemed Healthcare. It trades about 0.03 of its potential returns per unit of risk. Viemed Healthcare is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 777.00 in Viemed Healthcare on August 26, 2024 and sell it today you would earn a total of 98.00 from holding Viemed Healthcare or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sealed Air vs. Viemed Healthcare
Performance |
| Timeline |
| Sealed Air |
| Viemed Healthcare |
Sealed Air and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and Viemed Healthcare
The main advantage of trading using opposite Sealed Air and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air 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.| Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Reynolds Consumer Products | Sealed Air vs. Ball Corporation |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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