Correlation Between SunLink Health and Star Holdings
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Star 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 Star 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 Star Holdings, you can compare the effects of market volatilities on SunLink Health and Star 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 Star Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Star Holdings.
Diversification Opportunities for SunLink Health and Star Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SunLink and Star is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Star Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Holdings 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 Star Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Holdings has no effect on the direction of SunLink Health i.e., SunLink Health and Star Holdings go up and down completely randomly.
Pair Corralation between SunLink Health and Star Holdings
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 1.75 times more return on investment than Star Holdings. However, SunLink Health is 1.75 times more volatile than Star Holdings. It trades about 0.03 of its potential returns per unit of risk. Star Holdings is currently generating about -0.05 per unit of risk. If you would invest 67.00 in SunLink Health Systems on September 12, 2024 and sell it today you would earn a total of 8.00 from holding SunLink Health Systems or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.07% |
| Values | Daily Returns |
SunLink Health Systems vs. Star Holdings
Performance |
| Timeline |
| SunLink Health Systems |
| Star Holdings |
SunLink Health and Star Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Star Holdings
The main advantage of trading using opposite SunLink Health and Star Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Star 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 Star Holdings will offset losses from the drop in Star Holdings' long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Star Holdings vs. New England Realty | Star Holdings vs. Frp Holdings Ord | Star Holdings vs. Marcus Millichap | Star Holdings vs. Transcontinental Realty Investors |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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