Correlation Between Sun Country and 37940XAN2

Can any of the company-specific risk be diversified away by investing in both Sun Country and 37940XAN2 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 37940XAN2 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 GPN 53 15 AUG 29, you can compare the effects of market volatilities on Sun Country and 37940XAN2 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 37940XAN2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and 37940XAN2.

Diversification Opportunities for Sun Country and 37940XAN2

0.05

Correlation Coefficient

Sun Country  37940XAN2

Significant diversification

The 3 months correlation between Sun and 37940XAN2 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and GPN 53 15 AUG 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPN 53 15 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 37940XAN2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPN 53 15 has no effect on the direction of Sun Country i.e., Sun Country and 37940XAN2 go up and down completely randomly.

Pair Corralation between Sun Country and 37940XAN2

Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the 37940XAN2. In addition to that, Sun Country is 10.79 times more volatile than GPN 53 15 AUG 29. It trades about -0.04 of its total potential returns per unit of risk. GPN 53 15 AUG 29 is currently generating about 0.15 per unit of volatility. If you would invest  10,038  in GPN 53 15 AUG 29 on December 29, 2024 and sell it today you would earn a total of  259.00  from holding GPN 53 15 AUG 29 or generate 2.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Sun Country Airlines  vs.  GPN 53 15 AUG 29

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 latest unsteady performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

GPN 53 15

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GPN 53 15 AUG 29 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 37940XAN2 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sun Country and 37940XAN2

The main advantage of trading using opposite Sun Country and 37940XAN2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, 37940XAN2 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 37940XAN2 will offset losses from the drop in 37940XAN2's long position.

The idea behind Sun Country Airlines and GPN 53 15 AUG 29 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.