Correlation Between Dyadic International and Viemed Healthcare

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

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

Diversification Opportunities for Dyadic International and Viemed Healthcare

0.06

Correlation Coefficient

Dyadic International  Viemed Healthcare

Significant diversification

The 3 months correlation between Dyadic and Viemed is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dyadic International and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Dyadic International 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 Dyadic International 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 Dyadic International i.e., Dyadic International and Viemed Healthcare go up and down completely randomly.

Pair Corralation between Dyadic International and Viemed Healthcare

Given the investment horizon of 90 days Dyadic International is expected to generate 1.51 times more return on investment than Viemed Healthcare. However, Dyadic International is 1.51 times more volatile than Viemed Healthcare. It trades about -0.06 of its potential returns per unit of risk. Viemed Healthcare is currently generating about -0.11 per unit of risk. If you would invest  118.00  in Dyadic International on May 3, 2025 and sell it today you would lose (18.00) from holding Dyadic International or give up 15.25% of portfolio value over 90 days.

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

Dyadic International  vs.  Viemed Healthcare

Dyadic International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dyadic International 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 basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Viemed Healthcare

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Dyadic International and Viemed Healthcare

The main advantage of trading using opposite Dyadic International and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyadic International 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 Dyadic International 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.