Correlation Between Viemed Healthcare and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Lixte Biotechnology 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 Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Viemed Healthcare and Lixte Biotechnology 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 Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Lixte Biotechnology.
Diversification Opportunities for Viemed Healthcare and Lixte Biotechnology
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Viemed and Lixte is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology 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 Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Lixte Biotechnology
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 12.85 times less return on investment than Lixte Biotechnology. But when comparing it to its historical volatility, Viemed Healthcare is 2.52 times less risky than Lixte Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Lixte Biotechnology Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Lixte Biotechnology Holdings on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Lixte Biotechnology Holdings or generate 11.71% 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. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Viemed Healthcare |
| Lixte Biotechnology |
Viemed Healthcare and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Lixte Biotechnology
The main advantage of trading using opposite Viemed Healthcare and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus Therapeutics |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |