Correlation Between SunLink Health and China Tontine
Can any of the company-specific risk be diversified away by investing in both SunLink Health and China Tontine 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 China Tontine 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 China Tontine Wines, you can compare the effects of market volatilities on SunLink Health and China Tontine 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 China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and China Tontine.
Diversification Opportunities for SunLink Health and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunLink and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines 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 China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of SunLink Health i.e., SunLink Health and China Tontine go up and down completely randomly.
Pair Corralation between SunLink Health and China Tontine
Considering the 90-day investment horizon SunLink Health is expected to generate 71.15 times less return on investment than China Tontine. But when comparing it to its historical volatility, SunLink Health Systems is 2.17 times less risky than China Tontine. It trades about 0.0 of its potential returns per unit of risk. China Tontine Wines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6.20 in China Tontine Wines on August 28, 2024 and sell it today you would earn a total of 0.90 from holding China Tontine Wines or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
SunLink Health Systems vs. China Tontine Wines
Performance |
| Timeline |
| SunLink Health Systems |
| China Tontine Wines |
SunLink Health and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and China Tontine
The main advantage of trading using opposite SunLink Health and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine'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 |
| China Tontine vs. GameStop Corp | China Tontine vs. Arrow Financial | China Tontine vs. Juniata Valley Financial | China Tontine vs. Playtika 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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