Correlation Between SunLink Health and Chemours
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Chemours 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 Chemours 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 Chemours Co, you can compare the effects of market volatilities on SunLink Health and Chemours 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 Chemours. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Chemours.
Diversification Opportunities for SunLink Health and Chemours
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunLink and Chemours is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours 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 Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of SunLink Health i.e., SunLink Health and Chemours go up and down completely randomly.
Pair Corralation between SunLink Health and Chemours
Considering the 90-day investment horizon SunLink Health is expected to generate 3.97 times less return on investment than Chemours. In addition to that, SunLink Health is 1.14 times more volatile than Chemours Co. It trades about 0.06 of its total potential returns per unit of risk. Chemours Co is currently generating about 0.26 per unit of volatility. If you would invest 1,759 in Chemours Co on September 2, 2024 and sell it today you would earn a total of 415.00 from holding Chemours Co or generate 23.59% 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. Chemours Co
Performance |
| Timeline |
| SunLink Health Systems |
| Chemours |
SunLink Health and Chemours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Chemours
The main advantage of trading using opposite SunLink Health and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene Corp |
| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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