Correlation Between Sun Country and Ainos

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

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

Diversification Opportunities for Sun Country and Ainos

0.39

Correlation Coefficient

Sun Country  Ainos

Weak diversification

The 3 months correlation between Sun and Ainos is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Sun Country 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 Sun Country Airlines are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Sun Country i.e., Sun Country and Ainos go up and down completely randomly.

Pair Corralation between Sun Country and Ainos

Given the investment horizon of 90 days Sun Country is expected to generate 16377.56 times less return on investment than Ainos. But when comparing it to its historical volatility, Sun Country Airlines is 36.51 times less risky than Ainos. It trades about 0.0 of its potential returns per unit of risk. Ainos Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Ainos Inc on October 25, 2024 and sell it today you would lose (3.00) from holding Ainos Inc or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	51.01%
Values	Daily Returns

Sun Country Airlines  vs.  Ainos Inc

Sun Country Airlines

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental indicators, Sun Country showed solid returns over the last few months and may actually be approaching a breakup point.

Ainos Inc

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Ainos showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sun Country and Ainos

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

The idea behind Sun Country Airlines and Ainos Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.