Correlation Between SUMIBK and Sun Country

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

By analyzing existing cross correlation between SUMIBK 5766 13 JAN 33 and Sun Country Airlines, you can compare the effects of market volatilities on SUMIBK and Sun Country 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 SUMIBK with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMIBK and Sun Country.

Diversification Opportunities for SUMIBK and Sun Country

-0.59

Correlation Coefficient

SUMIBK  Sun Country

Excellent diversification

The 3 months correlation between SUMIBK and Sun is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SUMIBK 5766 13 JAN 33 and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines and SUMIBK 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 SUMIBK 5766 13 JAN 33 are associated (or correlated) with Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of SUMIBK i.e., SUMIBK and Sun Country go up and down completely randomly.

Pair Corralation between SUMIBK and Sun Country

Assuming the 90 days trading horizon SUMIBK 5766 13 JAN 33 is expected to under-perform the Sun Country. But the bond apears to be less risky and, when comparing its historical volatility, SUMIBK 5766 13 JAN 33 is 6.87 times less risky than Sun Country. The bond trades about -0.03 of its potential returns per unit of risk. The Sun Country Airlines is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,428  in Sun Country Airlines on December 4, 2024 and sell it today you would earn a total of  140.00  from holding Sun Country Airlines or generate 9.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	84.75%
Values	Daily Returns

SUMIBK 5766 13 JAN 33  vs.  Sun Country Airlines

SUMIBK 5766 13

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUMIBK 5766 13 JAN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SUMIBK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Sun Country Airlines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Sun Country may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SUMIBK and Sun Country

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

The idea behind SUMIBK 5766 13 JAN 33 and Sun Country Airlines 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.