Correlation Between SunLink Health and FG Merger
Can any of the company-specific risk be diversified away by investing in both SunLink Health and FG Merger 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 FG Merger 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 FG Merger Corp, you can compare the effects of market volatilities on SunLink Health and FG Merger 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 FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and FG Merger.
Diversification Opportunities for SunLink Health and FG Merger
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and FGMCW is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger 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 FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of SunLink Health i.e., SunLink Health and FG Merger go up and down completely randomly.
Pair Corralation between SunLink Health and FG Merger
If you would invest 64.00 in SunLink Health Systems on September 1, 2024 and sell it today you would earn a total of 22.00 from holding SunLink Health Systems or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
SunLink Health Systems vs. FG Merger Corp
Performance |
| Timeline |
| SunLink Health Systems |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SunLink Health and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and FG Merger
The main advantage of trading using opposite SunLink Health and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger'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 |
| FG Merger vs. Mativ Holdings | FG Merger vs. GEN Restaurant Group, | FG Merger vs. Sweetgreen | FG Merger vs. Dalata Hotel Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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