Correlation Between Viemed Healthcare and MYR
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and MYR 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 MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and MYR Group, you can compare the effects of market volatilities on Viemed Healthcare and MYR 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 MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and MYR.
Diversification Opportunities for Viemed Healthcare and MYR
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Viemed and MYR is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR 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 MYR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYR Group has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and MYR go up and down completely randomly.
Pair Corralation between Viemed Healthcare and MYR
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 10.65 times less return on investment than MYR. But when comparing it to its historical volatility, Viemed Healthcare is 1.36 times less risky than MYR. It trades about 0.04 of its potential returns per unit of risk. MYR Group is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 13,100 in MYR Group on September 1, 2024 and sell it today you would earn a total of 2,690 from holding MYR Group or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. MYR Group
Performance |
| Timeline |
| Viemed Healthcare |
| MYR Group |
Viemed Healthcare and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and MYR
The main advantage of trading using opposite Viemed Healthcare and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, MYR 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 MYR will offset losses from the drop in MYR's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. Sight Sciences | Viemed Healthcare vs. Nevro Corp |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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