Correlation Between SunLink Health and Summit Materials
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Summit Materials 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 Summit Materials 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 Summit Materials, you can compare the effects of market volatilities on SunLink Health and Summit Materials 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 Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Summit Materials.
Diversification Opportunities for SunLink Health and Summit Materials
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunLink and Summit is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials 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 Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of SunLink Health i.e., SunLink Health and Summit Materials go up and down completely randomly.
Pair Corralation between SunLink Health and Summit Materials
Considering the 90-day investment horizon SunLink Health is expected to generate 1.19 times less return on investment than Summit Materials. In addition to that, SunLink Health is 2.12 times more volatile than Summit Materials. It trades about 0.03 of its total potential returns per unit of risk. Summit Materials is currently generating about 0.07 per unit of volatility. If you would invest 2,876 in Summit Materials on September 12, 2024 and sell it today you would earn a total of 2,214 from holding Summit Materials or generate 76.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Summit Materials
Performance |
| Timeline |
| SunLink Health Systems |
| Summit Materials |
SunLink Health and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Summit Materials
The main advantage of trading using opposite SunLink Health and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |