Correlation Between Viemed Healthcare and SunOpta
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and SunOpta, you can compare the effects of market volatilities on Viemed Healthcare and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and SunOpta.
Diversification Opportunities for Viemed Healthcare and SunOpta
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viemed and SunOpta is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and SunOpta go up and down completely randomly.
Pair Corralation between Viemed Healthcare and SunOpta
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.79 times more return on investment than SunOpta. However, Viemed Healthcare is 1.27 times less risky than SunOpta. It trades about 0.03 of its potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of risk. If you would invest 740.00 in Viemed Healthcare on August 23, 2024 and sell it today you would earn a total of 131.00 from holding Viemed Healthcare or generate 17.7% 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. SunOpta
Performance |
| Timeline |
| Viemed Healthcare |
| SunOpta |
Viemed Healthcare and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viemed Healthcare and SunOpta
The main advantage of trading using opposite Viemed Healthcare and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Natures Sunshine Products | SunOpta vs. J J Snack | SunOpta vs. John B Sanfilippo |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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