Correlation Between Airspan Networks and Viemed Healthcare

Can any of the company-specific risk be diversified away by investing in both Airspan Networks 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 Airspan Networks and Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Airspan Networks Holdings and Viemed Healthcare, you can compare the effects of market volatilities on Airspan Networks 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 Airspan Networks with a short position of Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airspan Networks and Viemed Healthcare.

Diversification Opportunities for Airspan Networks and Viemed Healthcare

-0.05

Correlation Coefficient

Airspan Networks  Viemed Healthcare

Good diversification

The 3 months correlation between Airspan and Viemed is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Airspan Networks Holdings and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Airspan Networks 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 Airspan Networks Holdings 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 Airspan Networks i.e., Airspan Networks and Viemed Healthcare go up and down completely randomly.

Pair Corralation between Airspan Networks and Viemed Healthcare

If you would invest  0.25  in Airspan Networks Holdings on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Airspan Networks Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Airspan Networks Holdings  vs.  Viemed Healthcare

Airspan Networks Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Airspan Networks Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Airspan Networks is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Viemed Healthcare

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Viemed Healthcare are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting primary indicators, Viemed Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airspan Networks and Viemed Healthcare

The main advantage of trading using opposite Airspan Networks and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airspan Networks 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.

The idea behind Airspan Networks Holdings and Viemed Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.