Correlation Between Dennys Corp and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Dennys Corp 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 Dennys Corp and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and SunLink Health Systems, you can compare the effects of market volatilities on Dennys Corp 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 Dennys Corp with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and SunLink Health.
Diversification Opportunities for Dennys Corp and SunLink Health
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dennys and SunLink is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp 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 Dennys Corp 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 Dennys Corp 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 Dennys Corp i.e., Dennys Corp and SunLink Health go up and down completely randomly.
Pair Corralation between Dennys Corp and SunLink Health
Given the investment horizon of 90 days Dennys Corp is expected to generate 2.02 times less return on investment than SunLink Health. But when comparing it to its historical volatility, Dennys Corp is 1.56 times less risky than SunLink Health. It trades about 0.0 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 88.00 in SunLink Health Systems on August 31, 2024 and sell it today you would lose (2.00) from holding SunLink Health Systems or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. SunLink Health Systems
Performance |
| Timeline |
| Dennys Corp |
| SunLink Health Systems |
Dennys Corp and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and SunLink Health
The main advantage of trading using opposite Dennys Corp and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp 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.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |