Correlation Between Viemed Healthcare and Aimei Health
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Aimei Health 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 Viemed Healthcare and Aimei Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Aimei Health Technology, you can compare the effects of market volatilities on Viemed Healthcare and Aimei Health 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 Viemed Healthcare with a short position of Aimei Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Aimei Health.
Diversification Opportunities for Viemed Healthcare and Aimei Health
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Viemed and Aimei is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Aimei Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimei Health Technology and Viemed Healthcare 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 Viemed Healthcare are associated (or correlated) with Aimei Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimei Health Technology has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Aimei Health go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Aimei Health
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 1.49 times more return on investment than Aimei Health. However, Viemed Healthcare is 1.49 times more volatile than Aimei Health Technology. It trades about 0.02 of its potential returns per unit of risk. Aimei Health Technology is currently generating about 0.02 per unit of risk. If you would invest 872.00 in Viemed Healthcare on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Viemed Healthcare or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Aimei Health Technology
Performance |
| Timeline |
| Viemed Healthcare |
| Aimei Health Technology |
Viemed Healthcare and Aimei Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Aimei Health
The main advantage of trading using opposite Viemed Healthcare and Aimei Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Aimei Health 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 Aimei Health will offset losses from the drop in Aimei Health's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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