Correlation Between SunLink Health and Café Serendipity
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Café Serendipity 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 Café Serendipity 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 Caf Serendipity Holdings, you can compare the effects of market volatilities on SunLink Health and Café Serendipity 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 Café Serendipity. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Café Serendipity.
Diversification Opportunities for SunLink Health and Café Serendipity
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and Café is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Caf Serendipity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caf Serendipity Holdings 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 Café Serendipity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caf Serendipity Holdings has no effect on the direction of SunLink Health i.e., SunLink Health and Café Serendipity go up and down completely randomly.
Pair Corralation between SunLink Health and Café Serendipity
Considering the 90-day investment horizon SunLink Health is expected to generate 35.8 times less return on investment than Café Serendipity. But when comparing it to its historical volatility, SunLink Health Systems is 12.45 times less risky than Café Serendipity. It trades about 0.02 of its potential returns per unit of risk. Caf Serendipity Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Caf Serendipity Holdings on September 2, 2024 and sell it today you would lose (3.98) from holding Caf Serendipity Holdings or give up 99.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Caf Serendipity Holdings
Performance |
| Timeline |
| SunLink Health Systems |
| Caf Serendipity Holdings |
SunLink Health and Café Serendipity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Café Serendipity
The main advantage of trading using opposite SunLink Health and Café Serendipity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Café Serendipity 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 Café Serendipity will offset losses from the drop in Café Serendipity's long position.| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene Corp |
| Café Serendipity vs. China Jo Jo Drugstores | Café Serendipity vs. SunLink Health Systems | Café Serendipity vs. Leafly Holdings | Café Serendipity vs. PetMed Express |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |