Correlation Between Rite Aid and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Rite Aid 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 Rite Aid and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rite Aid and SunLink Health Systems, you can compare the effects of market volatilities on Rite Aid 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 Rite Aid with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rite Aid and SunLink Health.
Diversification Opportunities for Rite Aid and SunLink Health
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rite and SunLink is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rite Aid 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 Rite Aid 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 Rite Aid 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 Rite Aid i.e., Rite Aid and SunLink Health go up and down completely randomly.
Pair Corralation between Rite Aid and SunLink Health
If you would invest 156.00 in Rite Aid on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Rite Aid or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Rite Aid vs. SunLink Health Systems
Performance |
| Timeline |
| Rite Aid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SunLink Health Systems |
Rite Aid and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rite Aid and SunLink Health
The main advantage of trading using opposite Rite Aid and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rite Aid 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.| Rite Aid vs. PetMed Express | Rite Aid vs. High Tide | Rite Aid vs. China Jo Jo Drugstores | Rite Aid vs. Walgreens Boots Alliance |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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