Correlation Between SunLink Health and United States
Can any of the company-specific risk be diversified away by investing in both SunLink Health and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on SunLink Health and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and United States.
Diversification Opportunities for SunLink Health and United States
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and United is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of SunLink Health i.e., SunLink Health and United States go up and down completely randomly.
Pair Corralation between SunLink Health and United States
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 2.03 times more return on investment than United States. However, SunLink Health is 2.03 times more volatile than United States Steel. It trades about 0.06 of its potential returns per unit of risk. United States Steel is currently generating about 0.02 per unit of risk. If you would invest 80.00 in SunLink Health Systems on November 28, 2024 and sell it today you would earn a total of 27.00 from holding SunLink Health Systems or generate 33.75% 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. United States Steel
Performance |
| Timeline |
| SunLink Health Systems |
| United States Steel |
SunLink Health and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and United States
The main advantage of trading using opposite SunLink Health and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| SunLink Health vs. Allstar Health Brands | SunLink Health vs. Kiaro Holdings Corp | SunLink Health vs. China Jo Jo Drugstores | SunLink Health vs. PetMed Express |
| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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