Correlation Between Viemed Healthcare and BAIYU Holdings
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and BAIYU Holdings 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 BAIYU Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and BAIYU Holdings, you can compare the effects of market volatilities on Viemed Healthcare and BAIYU Holdings 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 BAIYU Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and BAIYU Holdings.
Diversification Opportunities for Viemed Healthcare and BAIYU Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viemed and BAIYU is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and BAIYU Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIYU Holdings 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 BAIYU Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIYU Holdings has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and BAIYU Holdings go up and down completely randomly.
Pair Corralation between Viemed Healthcare and BAIYU Holdings
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.5 times more return on investment than BAIYU Holdings. However, Viemed Healthcare is 2.01 times less risky than BAIYU Holdings. It trades about 0.03 of its potential returns per unit of risk. BAIYU Holdings is currently generating about -0.15 per unit of risk. If you would invest 861.00 in Viemed Healthcare on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Viemed Healthcare or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
Viemed Healthcare vs. BAIYU Holdings
Performance |
| Timeline |
| Viemed Healthcare |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Viemed Healthcare and BAIYU Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and BAIYU Holdings
The main advantage of trading using opposite Viemed Healthcare and BAIYU Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, BAIYU Holdings 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 BAIYU Holdings will offset losses from the drop in BAIYU Holdings' long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. Nevro Corp | Viemed Healthcare vs. Orthopediatrics Corp |
| BAIYU Holdings vs. WiMi Hologram Cloud | BAIYU Holdings vs. Wicket Gaming AB | BAIYU Holdings vs. Digi International | BAIYU Holdings vs. Radcom |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |