Correlation Between SunLink Health and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Bluerock Homes 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 Bluerock Homes 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 Bluerock Homes Trust, you can compare the effects of market volatilities on SunLink Health and Bluerock Homes 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 Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Bluerock Homes.
Diversification Opportunities for SunLink Health and Bluerock Homes
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SunLink and Bluerock is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust 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 Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of SunLink Health i.e., SunLink Health and Bluerock Homes go up and down completely randomly.
Pair Corralation between SunLink Health and Bluerock Homes
Considering the 90-day investment horizon SunLink Health is expected to generate 2.69 times less return on investment than Bluerock Homes. In addition to that, SunLink Health is 1.87 times more volatile than Bluerock Homes Trust. It trades about 0.01 of its total potential returns per unit of risk. Bluerock Homes Trust is currently generating about 0.03 per unit of volatility. If you would invest 1,275 in Bluerock Homes Trust on September 12, 2024 and sell it today you would earn a total of 155.00 from holding Bluerock Homes Trust or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Bluerock Homes Trust
Performance |
| Timeline |
| SunLink Health Systems |
| Bluerock Homes Trust |
SunLink Health and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Bluerock Homes
The main advantage of trading using opposite SunLink Health and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |