Correlation Between FlyExclusive, and Sunlands Technology

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

By analyzing existing cross correlation between flyExclusive, and Sunlands Technology Group, you can compare the effects of market volatilities on FlyExclusive, and Sunlands Technology 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 FlyExclusive, with a short position of Sunlands Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlyExclusive, and Sunlands Technology.

Diversification Opportunities for FlyExclusive, and Sunlands Technology

-0.59

Correlation Coefficient

FlyExclusive,  Sunlands Technology

Excellent diversification

The 3 months correlation between FlyExclusive, and Sunlands is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and Sunlands Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlands Technology and FlyExclusive, 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 flyExclusive, are associated (or correlated) with Sunlands Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlands Technology has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and Sunlands Technology go up and down completely randomly.

Pair Corralation between FlyExclusive, and Sunlands Technology

Given the investment horizon of 90 days flyExclusive, is expected to under-perform the Sunlands Technology. In addition to that, FlyExclusive, is 1.02 times more volatile than Sunlands Technology Group. It trades about -0.01 of its total potential returns per unit of risk. Sunlands Technology Group is currently generating about 0.0 per unit of volatility. If you would invest  1,490  in Sunlands Technology Group on October 23, 2024 and sell it today you would lose (901.00) from holding Sunlands Technology Group or give up 60.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	87.04%
Values	Daily Returns

flyExclusive,  vs.  Sunlands Technology Group

flyExclusive,

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, FlyExclusive, showed solid returns over the last few months and may actually be approaching a breakup point.

Sunlands Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sunlands Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with FlyExclusive, and Sunlands Technology

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

The idea behind flyExclusive, and Sunlands Technology Group 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.