Correlation Between SunLink Health and Adicet Bio
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Adicet Bio 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 Adicet Bio 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 Adicet Bio, you can compare the effects of market volatilities on SunLink Health and Adicet Bio 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 Adicet Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Adicet Bio.
Diversification Opportunities for SunLink Health and Adicet Bio
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SunLink and Adicet is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Adicet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adicet Bio 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 Adicet Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adicet Bio has no effect on the direction of SunLink Health i.e., SunLink Health and Adicet Bio go up and down completely randomly.
Pair Corralation between SunLink Health and Adicet Bio
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 0.4 times more return on investment than Adicet Bio. However, SunLink Health Systems is 2.49 times less risky than Adicet Bio. It trades about -0.1 of its potential returns per unit of risk. Adicet Bio is currently generating about -0.06 per unit of risk. If you would invest 64.00 in SunLink Health Systems on February 26, 2024 and sell it today you would lose (4.00) from holding SunLink Health Systems or give up 6.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
SunLink Health Systems vs. Adicet Bio
Performance |
Timeline |
SunLink Health Systems |
Adicet Bio |
SunLink Health and Adicet Bio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SunLink Health and Adicet Bio
The main advantage of trading using opposite SunLink Health and Adicet Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Adicet Bio 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 Adicet Bio will offset losses from the drop in Adicet Bio's long position.SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Fire Flower Holdings | SunLink Health vs. Leafly Holdings |
Adicet Bio vs. Edgewise Therapeutics | Adicet Bio vs. Cullinan Oncology LLC | Adicet Bio vs. Vor Biopharma | Adicet Bio vs. Tenaya Therapeutics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |