Correlation Between Thrivent High and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and SunLink Health Systems, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and SunLink Health.
Diversification Opportunities for Thrivent High and SunLink Health
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and SunLink is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and SunLink Health go up and down completely randomly.
Pair Corralation between Thrivent High and SunLink Health
Assuming the 90 days horizon Thrivent High is expected to generate 9.17 times less return on investment than SunLink Health. But when comparing it to its historical volatility, Thrivent High Yield is 28.97 times less risky than SunLink Health. It trades about 0.15 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 80.00 in SunLink Health Systems on September 2, 2024 and sell it today you would earn a total of 6.00 from holding SunLink Health Systems or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. SunLink Health Systems
Performance |
| Timeline |
| Thrivent High Yield |
| SunLink Health Systems |
Thrivent High and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and SunLink Health
The main advantage of trading using opposite Thrivent High and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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