Correlation Between Viemed Healthcare and A SPAC

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

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

Diversification Opportunities for Viemed Healthcare and A SPAC

0.11

Correlation Coefficient

Viemed Healthcare  A SPAC

Average diversification

The 3 months correlation between Viemed and ASPC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Viemed Healthcare and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Viemed Healthcare i.e., Viemed Healthcare and A SPAC go up and down completely randomly.

Pair Corralation between Viemed Healthcare and A SPAC

Considering the 90-day investment horizon Viemed Healthcare is expected to generate 18.31 times more return on investment than A SPAC. However, Viemed Healthcare is 18.31 times more volatile than A SPAC III. It trades about 0.06 of its potential returns per unit of risk. A SPAC III is currently generating about 0.15 per unit of risk. If you would invest  657.00  in Viemed Healthcare on May 28, 2025 and sell it today you would earn a total of  52.00  from holding Viemed Healthcare or generate 7.91% return on investment over 90 days.

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

Viemed Healthcare  vs.  A SPAC III

Viemed Healthcare

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Viemed Healthcare are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Viemed Healthcare may actually be approaching a critical reversion point that can send shares even higher in September 2025.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Viemed Healthcare and A SPAC

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

The idea behind Viemed Healthcare and A SPAC III 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.