Correlation Between Viemed Healthcare and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and KLA Tencor 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 KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and KLA Tencor, you can compare the effects of market volatilities on Viemed Healthcare and KLA Tencor 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 KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and KLA Tencor.
Diversification Opportunities for Viemed Healthcare and KLA Tencor
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viemed and KLA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor 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 KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and KLA Tencor go up and down completely randomly.
Pair Corralation between Viemed Healthcare and KLA Tencor
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.76 times more return on investment than KLA Tencor. However, Viemed Healthcare is 1.32 times less risky than KLA Tencor. It trades about 0.07 of its potential returns per unit of risk. KLA Tencor is currently generating about 0.01 per unit of risk. If you would invest 739.00 in Viemed Healthcare on November 2, 2024 and sell it today you would earn a total of 92.00 from holding Viemed Healthcare or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. KLA Tencor
Performance |
| Timeline |
| Viemed Healthcare |
| KLA Tencor |
Viemed Healthcare and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and KLA Tencor
The main advantage of trading using opposite Viemed Healthcare and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Viemed Healthcare vs. Integer Holdings Corp | Viemed Healthcare vs. Glaukos Corp | Viemed Healthcare vs. CONMED | Viemed Healthcare vs. Pulmonx Corp |
| KLA Tencor vs. Diodes Incorporated | KLA Tencor vs. Daqo New Energy | KLA Tencor vs. Micron Technology | KLA Tencor vs. MagnaChip Semiconductor |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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