Correlation Between Viemed Healthcare and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Viemed Healthcare and Blue Owl 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 Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viemed Healthcare and Blue Owl Capital, you can compare the effects of market volatilities on Viemed Healthcare and Blue Owl 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 Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viemed Healthcare and Blue Owl.
Diversification Opportunities for Viemed Healthcare and Blue Owl
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viemed and Blue is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital 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 Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Blue Owl go up and down completely randomly.
Pair Corralation between Viemed Healthcare and Blue Owl
Considering the 90-day investment horizon Viemed Healthcare is expected to generate 5.77 times less return on investment than Blue Owl. In addition to that, Viemed Healthcare is 1.23 times more volatile than Blue Owl Capital. It trades about 0.02 of its total potential returns per unit of risk. Blue Owl Capital is currently generating about 0.12 per unit of volatility. If you would invest 1,412 in Blue Owl Capital on October 6, 2024 and sell it today you would earn a total of 991.00 from holding Blue Owl Capital or generate 70.18% 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. Blue Owl Capital
Performance |
Timeline |
Viemed Healthcare |
Blue Owl Capital |
Viemed Healthcare and Blue Owl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Viemed Healthcare and Blue Owl
The main advantage of trading using opposite Viemed Healthcare and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viemed Healthcare position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl'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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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