Correlation Between Viemed Healthcare and Alcon AG
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Alcon AG 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 Alcon AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Alcon AG, you can compare the effects of market volatilities on Viemed Healthcare and Alcon AG 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 Alcon AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Alcon AG.
Diversification Opportunities for Viemed Healthcare and Alcon AG
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viemed and Alcon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Alcon AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcon AG 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 Alcon AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcon AG has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Alcon AG go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Alcon AG
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 8.97 times less return on investment than Alcon AG. In addition to that, Viemed Healthcare is 1.87 times more volatile than Alcon AG. It trades about 0.0 of its total potential returns per unit of risk. Alcon AG is currently generating about 0.02 per unit of volatility. If you would invest 7,904 in Alcon AG on August 27, 2024 and sell it today you would earn a total of 695.00 from holding Alcon AG or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Alcon AG
Performance |
| Timeline |
| Viemed Healthcare |
| Alcon AG |
Viemed Healthcare and Alcon AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Alcon AG
The main advantage of trading using opposite Viemed Healthcare and Alcon AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Alcon AG 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 Alcon AG will offset losses from the drop in Alcon AG's long position.| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
| Alcon AG vs. Heartbeam | Alcon AG vs. EUDA Health Holdings | Alcon AG vs. Nutex Health | Alcon AG 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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