Correlation Between Viemed Healthcare and Kinsale Capital
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Kinsale Capital 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 Kinsale Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Kinsale Capital Group, you can compare the effects of market volatilities on Viemed Healthcare and Kinsale Capital 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 Kinsale Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Kinsale Capital.
Diversification Opportunities for Viemed Healthcare and Kinsale Capital
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Viemed and Kinsale is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Kinsale Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsale Capital Group 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 Kinsale Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsale Capital Group has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Kinsale Capital go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Kinsale Capital
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 2.11 times less return on investment than Kinsale Capital. In addition to that, Viemed Healthcare is 1.05 times more volatile than Kinsale Capital Group. It trades about 0.03 of its total potential returns per unit of risk. Kinsale Capital Group is currently generating about 0.06 per unit of volatility. If you would invest 27,905 in Kinsale Capital Group on September 3, 2024 and sell it today you would earn a total of 22,939 from holding Kinsale Capital Group or generate 82.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Kinsale Capital Group
Performance |
| Timeline |
| Viemed Healthcare |
| Kinsale Capital Group |
Viemed Healthcare and Kinsale Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Kinsale Capital
The main advantage of trading using opposite Viemed Healthcare and Kinsale Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Kinsale Capital 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 Kinsale Capital will offset losses from the drop in Kinsale Capital's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| Kinsale Capital vs. SPACE | Kinsale Capital vs. Ampleforth | Kinsale Capital vs. ionet | Kinsale Capital vs. KIN |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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