Correlation Between SunLink Health and Stepstone
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Stepstone 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 Stepstone 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 Stepstone Group, you can compare the effects of market volatilities on SunLink Health and Stepstone 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 Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Stepstone.
Diversification Opportunities for SunLink Health and Stepstone
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SunLink and Stepstone is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group 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 Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of SunLink Health i.e., SunLink Health and Stepstone go up and down completely randomly.
Pair Corralation between SunLink Health and Stepstone
Considering the 90-day investment horizon SunLink Health is expected to generate 3.54 times less return on investment than Stepstone. In addition to that, SunLink Health is 2.35 times more volatile than Stepstone Group. It trades about 0.02 of its total potential returns per unit of risk. Stepstone Group is currently generating about 0.17 per unit of volatility. If you would invest 4,078 in Stepstone Group on September 5, 2024 and sell it today you would earn a total of 2,207 from holding Stepstone Group or generate 54.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Stepstone Group
Performance |
| Timeline |
| SunLink Health Systems |
| Stepstone Group |
SunLink Health and Stepstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Stepstone
The main advantage of trading using opposite SunLink Health and Stepstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Stepstone 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 Stepstone will offset losses from the drop in Stepstone'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 |
| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges |