Correlation Between Viemed Healthcare and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and PennantPark Floating 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 PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and PennantPark Floating Rate, you can compare the effects of market volatilities on Viemed Healthcare and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and PennantPark Floating.
Diversification Opportunities for Viemed Healthcare and PennantPark Floating
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Viemed and PennantPark is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and PennantPark Floating go up and down completely randomly.
Pair Corralation between Viemed Healthcare and PennantPark Floating
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 15.94 times less return on investment than PennantPark Floating. In addition to that, Viemed Healthcare is 2.77 times more volatile than PennantPark Floating Rate. It trades about 0.0 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.06 per unit of volatility. If you would invest 909.00 in PennantPark Floating Rate on August 27, 2024 and sell it today you would earn a total of 198.00 from holding PennantPark Floating Rate or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. PennantPark Floating Rate
Performance |
| Timeline |
| Viemed Healthcare |
| PennantPark Floating Rate |
Viemed Healthcare and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and PennantPark Floating
The main advantage of trading using opposite Viemed Healthcare and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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