Correlation Between SunLink Health and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals 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 Acumen Pharmaceuticals, you can compare the effects of market volatilities on SunLink Health and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Acumen Pharmaceuticals.
Diversification Opportunities for SunLink Health and Acumen Pharmaceuticals
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SunLink and Acumen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of SunLink Health i.e., SunLink Health and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between SunLink Health and Acumen Pharmaceuticals
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 0.73 times more return on investment than Acumen Pharmaceuticals. However, SunLink Health Systems is 1.37 times less risky than Acumen Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.01 per unit of risk. If you would invest 96.00 in SunLink Health Systems on August 27, 2024 and sell it today you would lose (19.00) from holding SunLink Health Systems or give up 19.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| SunLink Health Systems |
| Acumen Pharmaceuticals |
SunLink Health and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Acumen Pharmaceuticals
The main advantage of trading using opposite SunLink Health and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |