Correlation Between Viemed Healthcare and Inogen
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Inogen 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 Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Inogen Inc, you can compare the effects of market volatilities on Viemed Healthcare and Inogen 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 Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Inogen.
Diversification Opportunities for Viemed Healthcare and Inogen
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viemed and Inogen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc 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 Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Inogen go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Inogen
Considering the 90-day investment horizon Viemed Healthcare is expected to under-perform the Inogen. But the stock apears to be less risky and, when comparing its historical volatility, Viemed Healthcare is 2.09 times less risky than Inogen. The stock trades about -0.09 of its potential returns per unit of risk. The Inogen Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Inogen Inc on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Inogen Inc or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Inogen Inc
Performance |
| Timeline |
| Viemed Healthcare |
| Inogen Inc |
Viemed Healthcare and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Inogen
The main advantage of trading using opposite Viemed Healthcare and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen's long position.| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |