Correlation Between SunLink Health and Biote Corp
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Biote Corp 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 Biote Corp 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 biote Corp, you can compare the effects of market volatilities on SunLink Health and Biote Corp 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 Biote Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Biote Corp.
Diversification Opportunities for SunLink Health and Biote Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and Biote is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and biote Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biote Corp 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 Biote Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biote Corp has no effect on the direction of SunLink Health i.e., SunLink Health and Biote Corp go up and down completely randomly.
Pair Corralation between SunLink Health and Biote Corp
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the Biote Corp. But the stock apears to be less risky and, when comparing its historical volatility, SunLink Health Systems is 1.85 times less risky than Biote Corp. The stock trades about -0.16 of its potential returns per unit of risk. The biote Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 512.00 in biote Corp on August 31, 2024 and sell it today you would earn a total of 156.00 from holding biote Corp or generate 30.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. biote Corp
Performance |
| Timeline |
| SunLink Health Systems |
| biote Corp |
SunLink Health and Biote Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Biote Corp
The main advantage of trading using opposite SunLink Health and Biote Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Biote Corp 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 Biote Corp will offset losses from the drop in Biote Corp'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 |
| Biote Corp vs. Encompass Health Corp | Biote Corp vs. Pennant Group | Biote Corp vs. The Ensign Group | Biote Corp vs. InnovAge Holding Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |