Correlation Between SunLink Health and MICROSOFT
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By analyzing existing cross correlation between SunLink Health Systems and MICROSOFT PORATION, you can compare the effects of market volatilities on SunLink Health and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and MICROSOFT.
Diversification Opportunities for SunLink Health and MICROSOFT
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and MICROSOFT is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of SunLink Health i.e., SunLink Health and MICROSOFT go up and down completely randomly.
Pair Corralation between SunLink Health and MICROSOFT
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 5.02 times more return on investment than MICROSOFT. However, SunLink Health is 5.02 times more volatile than MICROSOFT PORATION. It trades about 0.03 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about -0.02 per unit of risk. If you would invest 74.00 in SunLink Health Systems on September 14, 2024 and sell it today you would earn a total of 2.00 from holding SunLink Health Systems or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
SunLink Health Systems vs. MICROSOFT PORATION
Performance |
| Timeline |
| SunLink Health Systems |
| MICROSOFT PORATION |
SunLink Health and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and MICROSOFT
The main advantage of trading using opposite SunLink Health and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| SunLink Health vs. ASGN Inc | SunLink Health vs. Kforce Inc | SunLink Health vs. Kelly Services A | SunLink Health vs. AMN Healthcare Services |
| MICROSOFT vs. Lipocine | MICROSOFT vs. Radcom | MICROSOFT vs. SunLink Health Systems | MICROSOFT vs. RadNet 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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