Correlation Between SunLink Health and High-yield Municipal
Can any of the company-specific risk be diversified away by investing in both SunLink Health and High-yield Municipal 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 SunLink Health and High-yield Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunLink Health Systems and High Yield Municipal Fund, you can compare the effects of market volatilities on SunLink Health and High-yield Municipal 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 SunLink Health with a short position of High-yield Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and High-yield Municipal.
Diversification Opportunities for SunLink Health and High-yield Municipal
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and High-yield is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and SunLink Health 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 SunLink Health Systems are associated (or correlated) with High-yield Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of SunLink Health i.e., SunLink Health and High-yield Municipal go up and down completely randomly.
Pair Corralation between SunLink Health and High-yield Municipal
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 14.92 times more return on investment than High-yield Municipal. However, SunLink Health is 14.92 times more volatile than High Yield Municipal Fund. It trades about 0.02 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.08 per unit of risk. If you would invest 82.00 in SunLink Health Systems on September 2, 2024 and sell it today you would earn a total of 4.00 from holding SunLink Health Systems or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. High Yield Municipal Fund
Performance |
| Timeline |
| SunLink Health Systems |
| High Yield Municipal |
SunLink Health and High-yield Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and High-yield Municipal
The main advantage of trading using opposite SunLink Health and High-yield Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, High-yield Municipal 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 High-yield Municipal will offset losses from the drop in High-yield Municipal's long position.| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene Corp |
| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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