Correlation Between Viemed Healthcare and Repligen
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Repligen 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 Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Repligen, you can compare the effects of market volatilities on Viemed Healthcare and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Repligen.
Diversification Opportunities for Viemed Healthcare and Repligen
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viemed and Repligen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Repligen go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Repligen
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.86 times more return on investment than Repligen. However, Viemed Healthcare is 1.17 times less risky than Repligen. It trades about 0.03 of its potential returns per unit of risk. Repligen is currently generating about 0.0 per unit of risk. If you would invest 715.00 in Viemed Healthcare on August 26, 2024 and sell it today you would earn a total of 160.00 from holding Viemed Healthcare or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viemed Healthcare vs. Repligen
Performance |
| Timeline |
| Viemed Healthcare |
| Repligen |
Viemed Healthcare and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and Repligen
The main advantage of trading using opposite Viemed Healthcare and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
| Repligen vs. Fonar | Repligen vs. Burning Rock Biotech | Repligen vs. Sera Prognostics | Repligen vs. Exagen Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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