Correlation Between SunLink Health and Triumph
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Triumph 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 Triumph 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 Triumph Group, you can compare the effects of market volatilities on SunLink Health and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Triumph.
Diversification Opportunities for SunLink Health and Triumph
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SunLink and Triumph is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of SunLink Health i.e., SunLink Health and Triumph go up and down completely randomly.
Pair Corralation between SunLink Health and Triumph
If you would invest 80.00 in SunLink Health Systems on September 2, 2024 and sell it today you would earn a total of 6.00 from holding SunLink Health Systems or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
SunLink Health Systems vs. Triumph Group
Performance |
| Timeline |
| SunLink Health Systems |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SunLink Health and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Triumph
The main advantage of trading using opposite SunLink Health and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene Corp |
| Triumph vs. FormFactor | Triumph vs. Elmos Semiconductor SE | Triumph vs. IPG Photonics | Triumph vs. Upper Street Marketing |
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.
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