Correlation Between Getty Realty and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Getty 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 Getty 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 Getty Realty and SunLink Health Systems, you can compare the effects of market volatilities on Getty 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 Getty Realty with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and SunLink Health.
Diversification Opportunities for Getty Realty and SunLink Health
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getty and SunLink is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty 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 Getty 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 Getty Realty 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 Getty Realty i.e., Getty Realty and SunLink Health go up and down completely randomly.
Pair Corralation between Getty Realty and SunLink Health
Considering the 90-day investment horizon Getty Realty is expected to generate 0.26 times more return on investment than SunLink Health. However, Getty Realty is 3.83 times less risky than SunLink Health. It trades about 0.06 of its potential returns per unit of risk. SunLink Health Systems is currently generating about -0.1 per unit of risk. If you would invest 3,226 in Getty Realty on August 24, 2024 and sell it today you would earn a total of 44.00 from holding Getty Realty or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. SunLink Health Systems
Performance |
| Timeline |
| Getty Realty |
| SunLink Health Systems |
Getty Realty and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and SunLink Health
The main advantage of trading using opposite Getty Realty and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty 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.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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