Correlation Between Bluerock Homes and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Bluerock Homes and SunLink Health 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 Bluerock Homes and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluerock Homes Trust and SunLink Health Systems, you can compare the effects of market volatilities on Bluerock Homes and SunLink Health 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 Bluerock Homes with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluerock Homes and SunLink Health.
Diversification Opportunities for Bluerock Homes and SunLink Health
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bluerock and SunLink is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bluerock Homes Trust and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems and Bluerock Homes 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 Bluerock Homes Trust are associated (or correlated) with SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Bluerock Homes i.e., Bluerock Homes and SunLink Health go up and down completely randomly.
Pair Corralation between Bluerock Homes and SunLink Health
Considering the 90-day investment horizon Bluerock Homes Trust is expected to under-perform the SunLink Health. But the stock apears to be less risky and, when comparing its historical volatility, Bluerock Homes Trust is 2.37 times less risky than SunLink Health. The stock trades about -0.06 of its potential returns per unit of risk. The SunLink Health Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 79.00 in SunLink Health Systems on September 5, 2024 and sell it today you would lose (2.00) from holding SunLink Health Systems or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluerock Homes Trust vs. SunLink Health Systems
Performance |
| Timeline |
| Bluerock Homes Trust |
| SunLink Health Systems |
Bluerock Homes and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluerock Homes and SunLink Health
The main advantage of trading using opposite Bluerock Homes and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluerock Homes position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health's long position.| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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