Correlation Between SunLink Health and Codexis
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Codexis 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 Codexis 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 Codexis, you can compare the effects of market volatilities on SunLink Health and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Codexis.
Diversification Opportunities for SunLink Health and Codexis
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunLink and Codexis is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of SunLink Health i.e., SunLink Health and Codexis go up and down completely randomly.
Pair Corralation between SunLink Health and Codexis
Considering the 90-day investment horizon SunLink Health is expected to generate 3.82 times less return on investment than Codexis. In addition to that, SunLink Health is 1.15 times more volatile than Codexis. It trades about 0.06 of its total potential returns per unit of risk. Codexis is currently generating about 0.25 per unit of volatility. If you would invest 274.00 in Codexis on September 6, 2024 and sell it today you would earn a total of 215.00 from holding Codexis or generate 78.47% 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. Codexis
Performance |
Timeline |
SunLink Health Systems |
Codexis |
SunLink Health and Codexis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SunLink Health and Codexis
The main advantage of trading using opposite SunLink Health and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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