Correlation Between Viemed Healthcare and Rogers

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

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

Diversification Opportunities for Viemed Healthcare and Rogers

0.52

Correlation Coefficient

Viemed Healthcare  Rogers

Very weak diversification

The 3 months correlation between Viemed and Rogers is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and Rogers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers 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 Rogers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and Rogers go up and down completely randomly.

Pair Corralation between Viemed Healthcare and Rogers

Considering the 90-day investment horizon Viemed Healthcare is expected to generate 1.38 times more return on investment than Rogers. However, Viemed Healthcare is 1.38 times more volatile than Rogers. It trades about 0.01 of its potential returns per unit of risk. Rogers is currently generating about -0.03 per unit of risk. If you would invest  871.00  in Viemed Healthcare on October 23, 2024 and sell it today you would lose (36.00) from holding Viemed Healthcare or give up 4.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Viemed Healthcare  vs.  Rogers

Viemed Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Viemed Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Rogers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rogers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rogers is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Viemed Healthcare and Rogers

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

The idea behind Viemed Healthcare and Rogers 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.