Correlation Between MGIC Investment and SunLink Health
Can any of the company-specific risk be diversified away by investing in both MGIC Investment 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 MGIC Investment and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC Investment Corp and SunLink Health Systems, you can compare the effects of market volatilities on MGIC Investment 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 MGIC Investment with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC Investment and SunLink Health.
Diversification Opportunities for MGIC Investment and SunLink Health
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MGIC and SunLink is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MGIC Investment 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 MGIC Investment 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 MGIC Investment 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 MGIC Investment i.e., MGIC Investment and SunLink Health go up and down completely randomly.
Pair Corralation between MGIC Investment and SunLink Health
Considering the 90-day investment horizon MGIC Investment Corp is expected to generate 0.31 times more return on investment than SunLink Health. However, MGIC Investment Corp is 3.18 times less risky than SunLink Health. It trades about 0.11 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.01 per unit of risk. If you would invest 1,534 in MGIC Investment Corp on August 31, 2024 and sell it today you would earn a total of 1,092 from holding MGIC Investment Corp or generate 71.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC Investment Corp vs. SunLink Health Systems
Performance |
| Timeline |
| MGIC Investment Corp |
| SunLink Health Systems |
MGIC Investment and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC Investment and SunLink Health
The main advantage of trading using opposite MGIC Investment and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC Investment 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.| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Employers Holdings |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |