Correlation Between Viemed Healthcare and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Eurobank Ergasias 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 Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Eurobank Ergasias Services, you can compare the effects of market volatilities on Viemed Healthcare and Eurobank Ergasias 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 Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Eurobank Ergasias.
Diversification Opportunities for Viemed Healthcare and Eurobank Ergasias
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viemed and Eurobank is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Eurobank Ergasias
Considering the 90-day investment horizon Viemed Healthcare is expected to under-perform the Eurobank Ergasias. But the stock apears to be less risky and, when comparing its historical volatility, Viemed Healthcare is 1.17 times less risky than Eurobank Ergasias. The stock trades about -0.29 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Eurobank Ergasias Services on November 27, 2024 and sell it today you would lose (21.00) from holding Eurobank Ergasias Services or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Viemed Healthcare |
| Eurobank Ergasias |
Viemed Healthcare and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Eurobank Ergasias
The main advantage of trading using opposite Viemed Healthcare and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| Eurobank Ergasias vs. Zhihu Inc ADR | Eurobank Ergasias vs. Delaware Investments Florida | Eurobank Ergasias vs. NorthWestern | Eurobank Ergasias vs. Cheche Group Class |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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