Correlation Between SunLink Health and Amgen
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Amgen 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 Amgen 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 Amgen Inc, you can compare the effects of market volatilities on SunLink Health and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Amgen.
Diversification Opportunities for SunLink Health and Amgen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SunLink and Amgen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of SunLink Health i.e., SunLink Health and Amgen go up and down completely randomly.
Pair Corralation between SunLink Health and Amgen
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the Amgen. In addition to that, SunLink Health is 1.74 times more volatile than Amgen Inc. It trades about -0.16 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.21 per unit of volatility. If you would invest 31,349 in Amgen Inc on August 30, 2024 and sell it today you would lose (3,342) from holding Amgen Inc or give up 10.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Amgen Inc
Performance |
| Timeline |
| SunLink Health Systems |
| Amgen Inc |
SunLink Health and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Amgen
The main advantage of trading using opposite SunLink Health and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Amgen vs. Pharvaris BV | Amgen vs. Brinker International | Amgen vs. Alcoa Corp | Amgen vs. Direxion Daily FTSE |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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