Correlation Between SunLink Health and Kiaro Holdings
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Kiaro Holdings 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 Kiaro Holdings 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 Kiaro Holdings Corp, you can compare the effects of market volatilities on SunLink Health and Kiaro Holdings 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 Kiaro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Kiaro Holdings.
Diversification Opportunities for SunLink Health and Kiaro Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunLink and Kiaro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Kiaro Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiaro Holdings 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 Kiaro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiaro Holdings Corp has no effect on the direction of SunLink Health i.e., SunLink Health and Kiaro Holdings go up and down completely randomly.
Pair Corralation between SunLink Health and Kiaro Holdings
If you would invest 92.00 in SunLink Health Systems on November 9, 2024 and sell it today you would lose (4.00) from holding SunLink Health Systems or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
SunLink Health Systems vs. Kiaro Holdings Corp
Performance |
| Timeline |
| SunLink Health Systems |
| Kiaro Holdings Corp |
SunLink Health and Kiaro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Kiaro Holdings
The main advantage of trading using opposite SunLink Health and Kiaro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Kiaro Holdings 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 Kiaro Holdings will offset losses from the drop in Kiaro Holdings' long position.| SunLink Health vs. Allstar Health Brands | SunLink Health vs. Kiaro Holdings Corp | SunLink Health vs. China Jo Jo Drugstores | SunLink Health vs. PetMed Express |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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