Correlation Between SunLink Health and 031162DM9

Can any of the company-specific risk be diversified away by investing in both SunLink Health and 031162DM9 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 031162DM9 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 AMGN 525 02 MAR 25, you can compare the effects of market volatilities on SunLink Health and 031162DM9 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 031162DM9. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and 031162DM9.

Diversification Opportunities for SunLink Health and 031162DM9

0.01

Correlation Coefficient

SunLink Health  031162DM9

Significant diversification

The 3 months correlation between SunLink and 031162DM9 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and AMGN 525 02 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGN 525 02 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 031162DM9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGN 525 02 has no effect on the direction of SunLink Health i.e., SunLink Health and 031162DM9 go up and down completely randomly.

Pair Corralation between SunLink Health and 031162DM9

Considering the 90-day investment horizon SunLink Health Systems is expected to under-perform the 031162DM9. In addition to that, SunLink Health is 40.79 times more volatile than AMGN 525 02 MAR 25. It trades about -0.05 of its total potential returns per unit of risk. AMGN 525 02 MAR 25 is currently generating about -0.18 per unit of volatility. If you would invest  10,009  in AMGN 525 02 MAR 25 on September 14, 2024 and sell it today you would lose (44.00) from holding AMGN 525 02 MAR 25 or give up 0.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

SunLink Health Systems  vs.  AMGN 525 02 MAR 25

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 fairly strong basic indicators, SunLink Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

AMGN 525 02

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMGN 525 02 MAR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 031162DM9 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SunLink Health and 031162DM9

The main advantage of trading using opposite SunLink Health and 031162DM9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, 031162DM9 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 031162DM9 will offset losses from the drop in 031162DM9's long position.

The idea behind SunLink Health Systems and AMGN 525 02 MAR 25 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.