Correlation Between SunLink Health and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both SunLink Health and FTAI Aviation 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 FTAI Aviation 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 FTAI Aviation Ltd, you can compare the effects of market volatilities on SunLink Health and FTAI Aviation 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 FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and FTAI Aviation.
Diversification Opportunities for SunLink Health and FTAI Aviation
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SunLink and FTAI is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation 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 FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of SunLink Health i.e., SunLink Health and FTAI Aviation go up and down completely randomly.
Pair Corralation between SunLink Health and FTAI Aviation
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the FTAI Aviation. In addition to that, SunLink Health is 4.2 times more volatile than FTAI Aviation Ltd. It trades about -0.16 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.09 per unit of volatility. If you would invest 2,703 in FTAI Aviation Ltd on August 27, 2024 and sell it today you would earn a total of 47.00 from holding FTAI Aviation Ltd or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. FTAI Aviation Ltd
Performance |
| Timeline |
| SunLink Health Systems |
| FTAI Aviation |
SunLink Health and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and FTAI Aviation
The main advantage of trading using opposite SunLink Health and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, FTAI Aviation 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 FTAI Aviation will offset losses from the drop in FTAI Aviation'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 |
| FTAI Aviation vs. Ryder System | FTAI Aviation vs. Air Lease | FTAI Aviation vs. Vestis | FTAI Aviation vs. Willis Lease Finance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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