Correlation Between KENNAMETAL and Viemed Healthcare
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By analyzing existing cross correlation between KENNAMETAL INC 4625 and Viemed Healthcare, you can compare the effects of market volatilities on KENNAMETAL 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 KENNAMETAL with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENNAMETAL and Viemed Healthcare.
Diversification Opportunities for KENNAMETAL and Viemed Healthcare
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KENNAMETAL and Viemed is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding KENNAMETAL INC 4625 and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and KENNAMETAL 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 KENNAMETAL INC 4625 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 KENNAMETAL i.e., KENNAMETAL and Viemed Healthcare go up and down completely randomly.
Pair Corralation between KENNAMETAL and Viemed Healthcare
Assuming the 90 days trading horizon KENNAMETAL is expected to generate 6.5 times less return on investment than Viemed Healthcare. But when comparing it to its historical volatility, KENNAMETAL INC 4625 is 4.2 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 677.00 in Viemed Healthcare on September 4, 2024 and sell it today you would earn a total of 222.00 from holding Viemed Healthcare or generate 32.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.07% |
| Values | Daily Returns |
KENNAMETAL INC 4625 vs. Viemed Healthcare
Performance |
| Timeline |
| KENNAMETAL INC 4625 |
| Viemed Healthcare |
KENNAMETAL and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENNAMETAL and Viemed Healthcare
The main advantage of trading using opposite KENNAMETAL and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENNAMETAL 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.| KENNAMETAL vs. The Travelers Companies | KENNAMETAL vs. GE Aerospace | KENNAMETAL vs. Walmart | KENNAMETAL vs. Pfizer Inc |
| Viemed Healthcare vs. Baxter International | Viemed Healthcare vs. West Pharmaceutical Services | Viemed Healthcare vs. ResMed Inc | Viemed Healthcare vs. The Cooper Companies, |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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