Correlation Between Sandy Spring and Viemed Healthcare

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

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

Diversification Opportunities for Sandy Spring and Viemed Healthcare

0.38

Correlation Coefficient

Sandy Spring  Viemed Healthcare

Weak diversification

The 3 months correlation between Sandy and Viemed is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sandy Spring Bancorp and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare and Sandy Spring 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 Sandy Spring Bancorp 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 Sandy Spring i.e., Sandy Spring and Viemed Healthcare go up and down completely randomly.

Pair Corralation between Sandy Spring and Viemed Healthcare

If you would invest  2,795  in Sandy Spring Bancorp on May 4, 2025 and sell it today you would earn a total of  0.00  from holding Sandy Spring Bancorp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.61%
Values	Daily Returns

Sandy Spring Bancorp  vs.  Viemed Healthcare

Sandy Spring Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sandy Spring Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sandy Spring is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

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 Sandy Spring and Viemed Healthcare

The main advantage of trading using opposite Sandy Spring and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandy Spring 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 Sandy Spring Bancorp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.