Correlation Between Cedar Realty and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Cedar Realty 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 Cedar Realty and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cedar Realty Trust and SunLink Health Systems, you can compare the effects of market volatilities on Cedar Realty 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 Cedar Realty with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and SunLink Health.
Diversification Opportunities for Cedar Realty and SunLink Health
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cedar and SunLink is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty 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 Cedar Realty 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 Cedar Realty 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 Cedar Realty i.e., Cedar Realty and SunLink Health go up and down completely randomly.
Pair Corralation between Cedar Realty and SunLink Health
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.63 times more return on investment than SunLink Health. However, Cedar Realty Trust is 1.6 times less risky than SunLink Health. It trades about 0.05 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.0 per unit of risk. If you would invest 1,244 in Cedar Realty Trust on August 29, 2024 and sell it today you would earn a total of 376.00 from holding Cedar Realty Trust or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cedar Realty Trust vs. SunLink Health Systems
Performance |
| Timeline |
| Cedar Realty Trust |
| SunLink Health Systems |
Cedar Realty and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and SunLink Health
The main advantage of trading using opposite Cedar Realty and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty 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.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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