Correlation Between SunCoke Energy and Sk3

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SunCoke Energy and Sk3 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 SunCoke Energy and Sk3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunCoke Energy and Sk3 Group, you can compare the effects of market volatilities on SunCoke Energy and Sk3 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 SunCoke Energy with a short position of Sk3. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCoke Energy and Sk3.

Diversification Opportunities for SunCoke Energy and Sk3

SunCokeSk3Diversified AwaySunCokeSk3Diversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SunCoke and Sk3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunCoke Energy and Sk3 Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sk3 Group and SunCoke Energy 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 SunCoke Energy are associated (or correlated) with Sk3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sk3 Group has no effect on the direction of SunCoke Energy i.e., SunCoke Energy and Sk3 go up and down completely randomly.

Pair Corralation between SunCoke Energy and Sk3

If you would invest (100.00) in Sk3 Group on November 22, 2024 and sell it today you would earn a total of  100.00  from holding Sk3 Group or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SunCoke Energy  vs.  Sk3 Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-50
JavaScript chart by amCharts 3.21.15SXC SKTO
       Timeline  
SunCoke Energy 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SunCoke Energy 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 basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.51010.51111.51212.5
Sk3 Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sk3 Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Sk3 is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

SunCoke Energy and Sk3 Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.69-2.09-1.48-0.87-0.260.280.831.381.932.48 0.050.100.15
JavaScript chart by amCharts 3.21.15SXC SKTO
       Returns  

Pair Trading with SunCoke Energy and Sk3

The main advantage of trading using opposite SunCoke Energy and Sk3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCoke Energy position performs unexpectedly, Sk3 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 Sk3 will offset losses from the drop in Sk3's long position.
The idea behind SunCoke Energy and Sk3 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Commodity Directory
Find actively traded commodities issued by global exchanges
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas