Correlation Between SunLink Health and Genfit

Can any of the company-specific risk be diversified away by investing in both SunLink Health and Genfit 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 Genfit 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 Genfit, you can compare the effects of market volatilities on SunLink Health and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Genfit.

Diversification Opportunities for SunLink Health and Genfit

0.53

Correlation Coefficient

SunLink Health  Genfit

Very weak diversification

The 3 months correlation between SunLink and Genfit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of SunLink Health i.e., SunLink Health and Genfit go up and down completely randomly.

Pair Corralation between SunLink Health and Genfit

Considering the 90-day investment horizon SunLink Health Systems is expected to generate 1.11 times more return on investment than Genfit. However, SunLink Health is 1.11 times more volatile than Genfit. It trades about -0.05 of its potential returns per unit of risk. Genfit is currently generating about -0.1 per unit of risk. If you would invest  87.00  in SunLink Health Systems on September 21, 2024 and sell it today you would lose (15.00) from holding SunLink Health Systems or give up 17.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

SunLink Health Systems  vs.  Genfit

SunLink Health Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SunLink Health Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SunLink Health and Genfit

The main advantage of trading using opposite SunLink Health and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.

The idea behind SunLink Health Systems and Genfit 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..