Correlation Between Sellas Life and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and SunLink Health Systems, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and SunLink Health.
Diversification Opportunities for Sellas Life and SunLink Health
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sellas and SunLink is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences 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 Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and SunLink Health go up and down completely randomly.
Pair Corralation between Sellas Life and SunLink Health
Considering the 90-day investment horizon Sellas Life is expected to generate 1.38 times less return on investment than SunLink Health. In addition to that, Sellas Life is 1.25 times more volatile than SunLink Health Systems. It trades about 0.02 of its total potential returns per unit of risk. SunLink Health Systems is currently generating about 0.03 per unit of volatility. If you would invest 73.00 in SunLink Health Systems on September 4, 2024 and sell it today you would earn a total of 10.00 from holding SunLink Health Systems or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. SunLink Health Systems
Performance |
| Timeline |
| Sellas Life Sciences |
| SunLink Health Systems |
Sellas Life and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and SunLink Health
The main advantage of trading using opposite Sellas Life and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. Candel Therapeutics | Sellas Life vs. Cingulate Warrants | Sellas Life vs. Unicycive Therapeutics | Sellas Life vs. Cardio Diagnostics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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