Correlation Between SunLink Health and ZEEKR Intelligent
Can any of the company-specific risk be diversified away by investing in both SunLink Health and ZEEKR Intelligent 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 ZEEKR Intelligent 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 ZEEKR Intelligent Technology, you can compare the effects of market volatilities on SunLink Health and ZEEKR Intelligent 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 ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and ZEEKR Intelligent.
Diversification Opportunities for SunLink Health and ZEEKR Intelligent
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunLink and ZEEKR is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of SunLink Health i.e., SunLink Health and ZEEKR Intelligent go up and down completely randomly.
Pair Corralation between SunLink Health and ZEEKR Intelligent
Considering the 90-day investment horizon SunLink Health is expected to generate 3.38 times less return on investment than ZEEKR Intelligent. But when comparing it to its historical volatility, SunLink Health Systems is 1.56 times less risky than ZEEKR Intelligent. It trades about 0.02 of its potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,100 in ZEEKR Intelligent Technology on August 27, 2024 and sell it today you would earn a total of 140.00 from holding ZEEKR Intelligent Technology or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.02% |
| Values | Daily Returns |
SunLink Health Systems vs. ZEEKR Intelligent Technology
Performance |
| Timeline |
| SunLink Health Systems |
| ZEEKR Intelligent |
SunLink Health and ZEEKR Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and ZEEKR Intelligent
The main advantage of trading using opposite SunLink Health and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, ZEEKR Intelligent 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 ZEEKR Intelligent will offset losses from the drop in ZEEKR Intelligent's long position.The idea behind SunLink Health Systems and ZEEKR Intelligent Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ZEEKR Intelligent vs. Rumble Inc | ZEEKR Intelligent vs. Xponential Fitness | ZEEKR Intelligent vs. Nextplat Corp | ZEEKR Intelligent vs. SunLink Health Systems |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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