Correlation Between Wabash National and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Wabash National and Viemed Healthcare 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 Wabash National and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and Viemed Healthcare, you can compare the effects of market volatilities on Wabash National and Viemed Healthcare 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 Wabash National with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and Viemed Healthcare.
Diversification Opportunities for Wabash National and Viemed Healthcare
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wabash and Viemed is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Wabash National 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 Wabash National are associated (or correlated) with Viemed Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viemed Healthcare has no effect on the direction of Wabash National i.e., Wabash National and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Wabash National and Viemed Healthcare
Considering the 90-day investment horizon Wabash National is expected to under-perform the Viemed Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Wabash National is 1.16 times less risky than Viemed Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Viemed Healthcare is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Viemed Healthcare on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Viemed Healthcare or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wabash National vs. Viemed Healthcare
Performance |
| Timeline |
| Wabash National |
| Viemed Healthcare |
Wabash National and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabash National and Viemed Healthcare
The main advantage of trading using opposite Wabash National and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National position performs unexpectedly, Viemed Healthcare 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 Viemed Healthcare will offset losses from the drop in Viemed Healthcare's long position.| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets |