Correlation Between SunLink Health and SL Green
Can any of the company-specific risk be diversified away by investing in both SunLink Health and SL Green 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 SL Green 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 SL Green Realty, you can compare the effects of market volatilities on SunLink Health and SL Green 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 SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and SL Green.
Diversification Opportunities for SunLink Health and SL Green
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SunLink and SLG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty 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 SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of SunLink Health i.e., SunLink Health and SL Green go up and down completely randomly.
Pair Corralation between SunLink Health and SL Green
Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the SL Green. In addition to that, SunLink Health is 2.22 times more volatile than SL Green Realty. It trades about -0.16 of its total potential returns per unit of risk. SL Green Realty is currently generating about 0.05 per unit of volatility. If you would invest 7,758 in SL Green Realty on August 31, 2024 and sell it today you would earn a total of 127.00 from holding SL Green Realty or generate 1.64% 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. SL Green Realty
Performance |
| Timeline |
| SunLink Health Systems |
| SL Green Realty |
SunLink Health and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and SL Green
The main advantage of trading using opposite SunLink Health and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green'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 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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