Correlation Between Bimi International and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Bimi International 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 Bimi International and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bimi International Medical and SunLink Health Systems, you can compare the effects of market volatilities on Bimi International 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 Bimi International with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimi International and SunLink Health.
Diversification Opportunities for Bimi International and SunLink Health
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bimi and SunLink is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bimi International Medical 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 Bimi 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 Bimi International Medical 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 Bimi International i.e., Bimi International and SunLink Health go up and down completely randomly.
Pair Corralation between Bimi International and SunLink Health
If you would invest 83.00 in SunLink Health Systems on November 1, 2024 and sell it today you would earn a total of 3.70 from holding SunLink Health Systems or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Bimi International Medical vs. SunLink Health Systems
Performance |
| Timeline |
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SunLink Health Systems |
Bimi International and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimi International and SunLink Health
The main advantage of trading using opposite Bimi International and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimi International 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.| Bimi International vs. PetMed Express | Bimi International vs. Allstar Health Brands | Bimi International vs. SunLink Health Systems | Bimi International vs. China Jo Jo Drugstores |
| SunLink Health vs. Allstar Health Brands | SunLink Health vs. Kiaro Holdings Corp | SunLink Health vs. China Jo Jo Drugstores | SunLink Health vs. PetMed Express |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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