Correlation Between SunLink Health and Arhaus
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Arhaus 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 Arhaus 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 Arhaus Inc, you can compare the effects of market volatilities on SunLink Health and Arhaus 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 Arhaus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Arhaus.
Diversification Opportunities for SunLink Health and Arhaus
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and Arhaus is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Arhaus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arhaus 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 Arhaus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arhaus Inc has no effect on the direction of SunLink Health i.e., SunLink Health and Arhaus go up and down completely randomly.
Pair Corralation between SunLink Health and Arhaus
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the Arhaus. In addition to that, SunLink Health is 1.52 times more volatile than Arhaus Inc. It trades about -0.02 of its total potential returns per unit of risk. Arhaus Inc is currently generating about 0.19 per unit of volatility. If you would invest 979.00 in Arhaus Inc on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Arhaus Inc or generate 13.69% 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. Arhaus Inc
Performance |
| Timeline |
| SunLink Health Systems |
| Arhaus Inc |
SunLink Health and Arhaus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Arhaus
The main advantage of trading using opposite SunLink Health and Arhaus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Arhaus 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 Arhaus will offset losses from the drop in Arhaus' long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Arhaus vs. Victory Integrity Smallmid Cap | Arhaus vs. Hilton Worldwide Holdings | Arhaus vs. NVIDIA | Arhaus vs. JPMorgan Chase Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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