Correlation Between SunLink Health and Tsuruha Holdings
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Tsuruha 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 Tsuruha 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 Tsuruha Holdings, you can compare the effects of market volatilities on SunLink Health and Tsuruha 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 Tsuruha Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Tsuruha Holdings.
Diversification Opportunities for SunLink Health and Tsuruha Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunLink and Tsuruha is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Tsuruha Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsuruha 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 Tsuruha Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsuruha Holdings has no effect on the direction of SunLink Health i.e., SunLink Health and Tsuruha Holdings go up and down completely randomly.
Pair Corralation between SunLink Health and Tsuruha Holdings
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 0.33 times more return on investment than Tsuruha Holdings. However, SunLink Health Systems is 3.02 times less risky than Tsuruha Holdings. It trades about 0.03 of its potential returns per unit of risk. Tsuruha Holdings is currently generating about -0.17 per unit of risk. If you would invest 68.00 in SunLink Health Systems on September 13, 2024 and sell it today you would earn a total of 6.10 from holding SunLink Health Systems or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.41% |
| Values | Daily Returns |
SunLink Health Systems vs. Tsuruha Holdings
Performance |
| Timeline |
| SunLink Health Systems |
| Tsuruha Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SunLink Health and Tsuruha Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Tsuruha Holdings
The main advantage of trading using opposite SunLink Health and Tsuruha Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Tsuruha 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 Tsuruha Holdings will offset losses from the drop in Tsuruha Holdings' long position.| SunLink Health vs. ASGN Inc | SunLink Health vs. Kforce Inc | SunLink Health vs. Kelly Services A | SunLink Health vs. AMN Healthcare Services |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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