Correlation Between Viemed Healthcare and ATI Physical
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and ATI Physical 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 ATI Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and ATI Physical Therapy, you can compare the effects of market volatilities on Viemed Healthcare and ATI Physical 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 ATI Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and ATI Physical.
Diversification Opportunities for Viemed Healthcare and ATI Physical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viemed and ATI is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and ATI Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATI Physical Therapy 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 ATI Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATI Physical Therapy has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and ATI Physical go up and down completely randomly.
Pair Corralation between Viemed Healthcare and ATI Physical
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.5 times more return on investment than ATI Physical. However, Viemed Healthcare is 1.99 times less risky than ATI Physical. It trades about 0.03 of its potential returns per unit of risk. ATI Physical Therapy is currently generating about -0.06 per unit of risk. If you would invest 705.00 in Viemed Healthcare on August 28, 2024 and sell it today you would earn a total of 160.00 from holding Viemed Healthcare or generate 22.7% 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. ATI Physical Therapy
Performance |
| Timeline |
| Viemed Healthcare |
| ATI Physical Therapy |
Viemed Healthcare and ATI Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and ATI Physical
The main advantage of trading using opposite Viemed Healthcare and ATI Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, ATI Physical 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 ATI Physical will offset losses from the drop in ATI Physical's long position.| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
| ATI Physical vs. Universal Health Services | ATI Physical vs. Lifestance Health Group | ATI Physical vs. Select Medical Holdings | ATI Physical vs. Acadia Healthcare |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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