Correlation Between SunLink Health and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Kura Sushi 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 Kura Sushi 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 Kura Sushi USA, you can compare the effects of market volatilities on SunLink Health and Kura Sushi 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 Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Kura Sushi.
Diversification Opportunities for SunLink Health and Kura Sushi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SunLink and Kura is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of SunLink Health i.e., SunLink Health and Kura Sushi go up and down completely randomly.
Pair Corralation between SunLink Health and Kura Sushi
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 1.11 times more return on investment than Kura Sushi. However, SunLink Health is 1.11 times more volatile than Kura Sushi USA. It trades about 0.05 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.03 per unit of risk. If you would invest 71.00 in SunLink Health Systems on September 3, 2024 and sell it today you would earn a total of 15.00 from holding SunLink Health Systems or generate 21.13% 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. Kura Sushi USA
Performance |
| Timeline |
| SunLink Health Systems |
| Kura Sushi USA |
SunLink Health and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Kura Sushi
The main advantage of trading using opposite SunLink Health and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi'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 |
| Kura Sushi vs. Brinker International | Kura Sushi vs. Dennys Corp | Kura Sushi vs. Bloomin Brands | Kura Sushi vs. Jack In The |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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