Correlation Between Abpro Holdings and Sun Country

Can any of the company-specific risk be diversified away by investing in both Abpro Holdings and Sun Country 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 Abpro Holdings and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Abpro Holdings and Sun Country Airlines, you can compare the effects of market volatilities on Abpro Holdings and Sun Country 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 Abpro Holdings with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abpro Holdings and Sun Country.

Diversification Opportunities for Abpro Holdings and Sun Country

-0.2

Correlation Coefficient

Abpro Holdings  Sun Country

Good diversification

The 3 months correlation between Abpro and Sun is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Abpro Holdings and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines and Abpro Holdings 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 Abpro Holdings are associated (or correlated) with Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Abpro Holdings i.e., Abpro Holdings and Sun Country go up and down completely randomly.

Pair Corralation between Abpro Holdings and Sun Country

Assuming the 90 days horizon Abpro Holdings is expected to generate 10.42 times more return on investment than Sun Country. However, Abpro Holdings is 10.42 times more volatile than Sun Country Airlines. It trades about 0.13 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.0 per unit of risk. If you would invest  5.99  in Abpro Holdings on October 4, 2024 and sell it today you would earn a total of  2.31  from holding Abpro Holdings or generate 38.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	48.39%
Values	Daily Returns

Abpro Holdings  vs.  Sun Country Airlines

Abpro Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Abpro Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Abpro Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Sun Country Airlines

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Sun Country showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Abpro Holdings and Sun Country

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

The idea behind Abpro Holdings and Sun Country Airlines 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.