Correlation Between Viemed Healthcare and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Microbot Medical 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 Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Microbot Medical, you can compare the effects of market volatilities on Viemed Healthcare and Microbot Medical 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 Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Microbot Medical.
Diversification Opportunities for Viemed Healthcare and Microbot Medical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Viemed and Microbot is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Microbot Medical go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Microbot Medical
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.48 times more return on investment than Microbot Medical. However, Viemed Healthcare is 2.08 times less risky than Microbot Medical. It trades about 0.0 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.02 per unit of risk. If you would invest 959.00 in Viemed Healthcare on August 31, 2024 and sell it today you would lose (92.00) from holding Viemed Healthcare or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Microbot Medical
Performance |
| Timeline |
| Viemed Healthcare |
| Microbot Medical |
Viemed Healthcare and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Microbot Medical
The main advantage of trading using opposite Viemed Healthcare and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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