Correlation Between Viemed Healthcare and NEWMONT

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

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

Diversification Opportunities for Viemed Healthcare and NEWMONT

0.51

Correlation Coefficient

Viemed Healthcare  NEWMONT

Very weak diversification

The 3 months correlation between Viemed and NEWMONT is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and NEWMONT MNG P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT MNG P 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 NEWMONT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWMONT MNG P has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and NEWMONT go up and down completely randomly.

Pair Corralation between Viemed Healthcare and NEWMONT

Considering the 90-day investment horizon Viemed Healthcare is expected to generate 0.69 times more return on investment than NEWMONT. However, Viemed Healthcare is 1.44 times less risky than NEWMONT. It trades about 0.15 of its potential returns per unit of risk. NEWMONT MNG P is currently generating about 0.02 per unit of risk. If you would invest  783.00  in Viemed Healthcare on October 22, 2024 and sell it today you would earn a total of  32.00  from holding Viemed Healthcare or generate 4.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	88.89%
Values	Daily Returns

Viemed Healthcare  vs.  NEWMONT MNG P

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 fragile 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.

NEWMONT MNG P

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days NEWMONT MNG P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NEWMONT is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Viemed Healthcare and NEWMONT

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

The idea behind Viemed Healthcare and NEWMONT MNG P 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.