Correlation Between SunLink Health and InnSuites Hospitality
Can any of the company-specific risk be diversified away by investing in both SunLink Health and InnSuites Hospitality 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 InnSuites Hospitality 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 InnSuites Hospitality Trust, you can compare the effects of market volatilities on SunLink Health and InnSuites Hospitality 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 InnSuites Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and InnSuites Hospitality.
Diversification Opportunities for SunLink Health and InnSuites Hospitality
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and InnSuites is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and InnSuites Hospitality Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InnSuites Hospitality 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 InnSuites Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InnSuites Hospitality has no effect on the direction of SunLink Health i.e., SunLink Health and InnSuites Hospitality go up and down completely randomly.
Pair Corralation between SunLink Health and InnSuites Hospitality
Considering the 90-day investment horizon SunLink Health is expected to generate 1.89 times less return on investment than InnSuites Hospitality. In addition to that, SunLink Health is 1.86 times more volatile than InnSuites Hospitality Trust. It trades about 0.09 of its total potential returns per unit of risk. InnSuites Hospitality Trust is currently generating about 0.33 per unit of volatility. If you would invest 191.00 in InnSuites Hospitality Trust on September 1, 2024 and sell it today you would earn a total of 36.00 from holding InnSuites Hospitality Trust or generate 18.85% 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. InnSuites Hospitality Trust
Performance |
| Timeline |
| SunLink Health Systems |
| InnSuites Hospitality |
SunLink Health and InnSuites Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and InnSuites Hospitality
The main advantage of trading using opposite SunLink Health and InnSuites Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, InnSuites Hospitality 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 InnSuites Hospitality will offset losses from the drop in InnSuites Hospitality'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 |
| InnSuites Hospitality vs. Regional Health Properties | InnSuites Hospitality vs. SemiLEDS | InnSuites Hospitality vs. SunLink Health Systems | InnSuites Hospitality vs. Avalon Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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