Correlation Between Sun Country and 26443CAA1

Can any of the company-specific risk be diversified away by investing in both Sun Country and 26443CAA1 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 26443CAA1 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 DUKE UNIV HEALTH, you can compare the effects of market volatilities on Sun Country and 26443CAA1 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 26443CAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and 26443CAA1.

Diversification Opportunities for Sun Country and 26443CAA1

-0.23

Correlation Coefficient

Sun Country  26443CAA1

Very good diversification

The 3 months correlation between Sun and 26443CAA1 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and DUKE UNIV HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE UNIV HEALTH 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 26443CAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE UNIV HEALTH has no effect on the direction of Sun Country i.e., Sun Country and 26443CAA1 go up and down completely randomly.

Pair Corralation between Sun Country and 26443CAA1

Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the 26443CAA1. In addition to that, Sun Country is 1.69 times more volatile than DUKE UNIV HEALTH. It trades about -0.08 of its total potential returns per unit of risk. DUKE UNIV HEALTH is currently generating about 0.02 per unit of volatility. If you would invest  7,910  in DUKE UNIV HEALTH on December 23, 2024 and sell it today you would earn a total of  53.00  from holding DUKE UNIV HEALTH or generate 0.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	44.26%
Values	Daily Returns

Sun Country Airlines  vs.  DUKE UNIV HEALTH

Sun Country Airlines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sun Country Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

DUKE UNIV HEALTH

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUKE UNIV HEALTH are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26443CAA1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sun Country and 26443CAA1

The main advantage of trading using opposite Sun Country and 26443CAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, 26443CAA1 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 26443CAA1 will offset losses from the drop in 26443CAA1's long position.

The idea behind Sun Country Airlines and DUKE UNIV HEALTH 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.