Correlation Between International Paper and SunLink Health
Can any of the company-specific risk be diversified away by investing in both International Paper 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 International Paper and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Paper and SunLink Health Systems, you can compare the effects of market volatilities on International Paper 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 International Paper with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Paper and SunLink Health.
Diversification Opportunities for International Paper and SunLink Health
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and SunLink is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding International Paper 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 International Paper 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 International Paper 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 International Paper i.e., International Paper and SunLink Health go up and down completely randomly.
Pair Corralation between International Paper and SunLink Health
If you would invest 86.00 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 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.91% |
| Values | Daily Returns |
International Paper vs. SunLink Health Systems
Performance |
| Timeline |
| International Paper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| SunLink Health Systems |
International Paper and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Paper and SunLink Health
The main advantage of trading using opposite International Paper and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Paper 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.| International Paper vs. SunLink Health Systems | International Paper vs. Neogen | International Paper vs. Xponential Fitness | International Paper vs. Waters |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |