Correlation Between SunLink Health and TOYO Co,

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

Diversification Opportunities for SunLink Health and TOYO Co,

-0.46

Correlation Coefficient

SunLink Health  TOYO Co,

Very good diversification

The 3 months correlation between SunLink and TOYO is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and TOYO Co, Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOYO Co, 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 TOYO Co,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOYO Co, has no effect on the direction of SunLink Health i.e., SunLink Health and TOYO Co, go up and down completely randomly.

Pair Corralation between SunLink Health and TOYO Co,

Considering the 90-day investment horizon SunLink Health is expected to generate 1.61 times less return on investment than TOYO Co,. But when comparing it to its historical volatility, SunLink Health Systems is 3.4 times less risky than TOYO Co,. It trades about 0.03 of its potential returns per unit of risk. TOYO Co, Ltd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  870.00  in TOYO Co, Ltd on September 18, 2024 and sell it today you would lose (520.00) from holding TOYO Co, Ltd or give up 59.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	24.04%
Values	Daily Returns

SunLink Health Systems  vs.  TOYO Co, Ltd

SunLink Health Systems

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SunLink Health Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, SunLink Health may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TOYO Co,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TOYO Co, Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, TOYO Co, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SunLink Health and TOYO Co,

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

The idea behind SunLink Health Systems and TOYO Co, Ltd 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.