Correlation Between Champion Gaming and Viemed Healthcare

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

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

Diversification Opportunities for Champion Gaming and Viemed Healthcare

0.4

Correlation Coefficient

Champion Gaming  Viemed Healthcare

Very weak diversification

The 3 months correlation between Champion and Viemed is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Champion Gaming Group and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Champion Gaming 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 Champion Gaming Group are associated (or correlated) with Viemed Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viemed Healthcare has no effect on the direction of Champion Gaming i.e., Champion Gaming and Viemed Healthcare go up and down completely randomly.

Pair Corralation between Champion Gaming and Viemed Healthcare

Assuming the 90 days horizon Champion Gaming Group is expected to under-perform the Viemed Healthcare. In addition to that, Champion Gaming is 6.09 times more volatile than Viemed Healthcare. It trades about -0.13 of its total potential returns per unit of risk. Viemed Healthcare is currently generating about -0.1 per unit of volatility. If you would invest  926.00  in Viemed Healthcare on October 24, 2024 and sell it today you would lose (113.00) from holding Viemed Healthcare or give up 12.2% of portfolio value over 90 days.

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

Champion Gaming Group  vs.  Viemed Healthcare

Champion Gaming Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Champion Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 weak 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.

Pair Trading with Champion Gaming and Viemed Healthcare

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

The idea behind Champion Gaming Group and Viemed Healthcare 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.