Correlation Between NorthWest Healthcare and Vigil Health

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

By analyzing existing cross correlation between NorthWest Healthcare Properties and Vigil Health Solutions, you can compare the effects of market volatilities on NorthWest Healthcare and Vigil Health 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 NorthWest Healthcare with a short position of Vigil Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorthWest Healthcare and Vigil Health.

Diversification Opportunities for NorthWest Healthcare and Vigil Health

0.0

Correlation Coefficient

NorthWest Healthcare  Vigil Health

Pay attention - limited upside

The 3 months correlation between NorthWest and Vigil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NorthWest Healthcare Propertie and Vigil Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vigil Health Solutions and NorthWest 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 NorthWest Healthcare Properties are associated (or correlated) with Vigil Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vigil Health Solutions has no effect on the direction of NorthWest Healthcare i.e., NorthWest Healthcare and Vigil Health go up and down completely randomly.

Pair Corralation between NorthWest Healthcare and Vigil Health

If you would invest (100.00) in Vigil Health Solutions on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Vigil Health Solutions or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

NorthWest Healthcare Propertie  vs.  Vigil Health Solutions

NorthWest Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NorthWest Healthcare Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vigil Health Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vigil Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vigil Health is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with NorthWest Healthcare and Vigil Health

The main advantage of trading using opposite NorthWest Healthcare and Vigil Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorthWest Healthcare position performs unexpectedly, Vigil Health 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 Vigil Health will offset losses from the drop in Vigil Health's long position.

The idea behind NorthWest Healthcare Properties and Vigil Health Solutions 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.