Correlation Between Viemed Healthcare and Cintas
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Cintas 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 Cintas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Cintas, you can compare the effects of market volatilities on Viemed Healthcare and Cintas 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 Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Cintas.
Diversification Opportunities for Viemed Healthcare and Cintas
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Viemed and Cintas is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas 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 Cintas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cintas has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Cintas go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Cintas
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 3.15 times less return on investment than Cintas. In addition to that, Viemed Healthcare is 2.03 times more volatile than Cintas. It trades about 0.02 of its total potential returns per unit of risk. Cintas is currently generating about 0.1 per unit of volatility. If you would invest 10,774 in Cintas on October 27, 2024 and sell it today you would earn a total of 8,965 from holding Cintas or generate 83.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Cintas
Performance |
| Timeline |
| Viemed Healthcare |
| Cintas |
Viemed Healthcare and Cintas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Cintas
The main advantage of trading using opposite Viemed Healthcare and Cintas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Cintas 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 Cintas will offset losses from the drop in Cintas' long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| Cintas vs. ABM Industries Incorporated | Cintas vs. Copart Inc | Cintas vs. Dolby Laboratories | Cintas vs. Relx PLC ADR |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |