Correlation Between Viemed Healthcare and Marex Group
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Marex Group 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 Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Marex Group plc, you can compare the effects of market volatilities on Viemed Healthcare and Marex Group 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 Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Marex Group.
Diversification Opportunities for Viemed Healthcare and Marex Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viemed and Marex is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc 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 Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Marex Group go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Marex Group
Considering the 90-day investment horizon Viemed Healthcare is expected to under-perform the Marex Group. In addition to that, Viemed Healthcare is 1.02 times more volatile than Marex Group plc. It trades about -0.02 of its total potential returns per unit of risk. Marex Group plc is currently generating about 0.25 per unit of volatility. If you would invest 2,536 in Marex Group plc on October 8, 2024 and sell it today you would earn a total of 817.00 from holding Marex Group plc or generate 32.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Viemed Healthcare vs. Marex Group plc
Performance |
Timeline |
Viemed Healthcare |
Marex Group plc |
Viemed Healthcare and Marex Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Viemed Healthcare and Marex Group
The main advantage of trading using opposite Viemed Healthcare and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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