Correlation Between Chimerix and Sun Country
Can any of the company-specific risk be diversified away by investing in both Chimerix 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 Chimerix and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chimerix and Sun Country Airlines, you can compare the effects of market volatilities on Chimerix 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 Chimerix with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimerix and Sun Country.
Diversification Opportunities for Chimerix and Sun Country
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chimerix and Sun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Chimerix 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 Chimerix 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 Chimerix 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 Chimerix i.e., Chimerix and Sun Country go up and down completely randomly.
Pair Corralation between Chimerix and Sun Country
Given the investment horizon of 90 days Chimerix is expected to generate 10.53 times more return on investment than Sun Country. However, Chimerix is 10.53 times more volatile than Sun Country Airlines. It trades about 0.17 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.1 per unit of risk. If you would invest 89.00 in Chimerix on December 2, 2024 and sell it today you would earn a total of 436.00 from holding Chimerix or generate 489.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chimerix vs. Sun Country Airlines
Performance |
Timeline |
Chimerix |
Sun Country Airlines |
Chimerix and Sun Country Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chimerix and Sun Country
The main advantage of trading using opposite Chimerix and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimerix 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.Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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