Correlation Between SunLink Health and Teradyne
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Teradyne 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 Teradyne 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 Teradyne, you can compare the effects of market volatilities on SunLink Health and Teradyne 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 Teradyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Teradyne.
Diversification Opportunities for SunLink Health and Teradyne
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunLink and Teradyne is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of SunLink Health i.e., SunLink Health and Teradyne go up and down completely randomly.
Pair Corralation between SunLink Health and Teradyne
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 1.74 times more return on investment than Teradyne. However, SunLink Health is 1.74 times more volatile than Teradyne. It trades about 0.06 of its potential returns per unit of risk. Teradyne is currently generating about -0.05 per unit of risk. If you would invest 59.00 in SunLink Health Systems on August 29, 2024 and sell it today you would earn a total of 16.00 from holding SunLink Health Systems or generate 27.12% 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. Teradyne
Performance |
| Timeline |
| SunLink Health Systems |
| Teradyne |
SunLink Health and Teradyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Teradyne
The main advantage of trading using opposite SunLink Health and Teradyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Teradyne 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 Teradyne will offset losses from the drop in Teradyne'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 |
| Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |