Correlation Between Sun Country and High Roller

Can any of the company-specific risk be diversified away by investing in both Sun Country and High Roller 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 High Roller 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 High Roller Technologies,, you can compare the effects of market volatilities on Sun Country and High Roller 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 High Roller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and High Roller.

Diversification Opportunities for Sun Country and High Roller

0.06

Correlation Coefficient

Sun Country  High Roller

Significant diversification

The 3 months correlation between Sun and High is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and High Roller Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Roller Technologies, 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 High Roller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Roller Technologies, has no effect on the direction of Sun Country i.e., Sun Country and High Roller go up and down completely randomly.

Pair Corralation between Sun Country and High Roller

Given the investment horizon of 90 days Sun Country is expected to generate 18.68 times less return on investment than High Roller. But when comparing it to its historical volatility, Sun Country Airlines is 3.12 times less risky than High Roller. It trades about 0.02 of its potential returns per unit of risk. High Roller Technologies, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  512.00  in High Roller Technologies, on September 16, 2024 and sell it today you would earn a total of  76.00  from holding High Roller Technologies, or generate 14.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sun Country Airlines  vs.  High Roller Technologies,

Sun Country Airlines

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 12 (%) 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.

High Roller Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days High Roller Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Sun Country and High Roller

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

The idea behind Sun Country Airlines and High Roller Technologies, 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.