Sun Country Airlines Stock Volatility
| SNCY Stock | USD 14.42 0.49 3.52% |
Sun Country appears to be not too volatile, given 3 months investment horizon. Sun Country Airlines owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.14, which indicates the firm had a 0.14% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Sun Country Airlines, which you can use to evaluate the volatility of the company. Please review Sun Country's Coefficient Of Variation of 688.49, semi deviation of 2.63, and Risk Adjusted Performance of 0.1188 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Sun Country's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Sun Country Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Sun daily returns, and it is calculated using variance and standard deviation. We also use Sun's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sun Country volatility.
Sun |
ESG Sustainability
While most ESG disclosures are voluntary, Sun Country's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Sun Country's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sun Country can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sun Country at lower prices. For example, an investor can purchase Sun stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Sun Country's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Sun Stock
| 0.87 | VLRS | Volaris | PairCorr |
| 0.86 | AAL | American Airlines Aggressive Push | PairCorr |
| 0.82 | ALK | Alaska Air Group Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.84 | DAL | Delta Air Lines Fiscal Year End 10th of January 2025 | PairCorr |
| 0.7 | LUV | Southwest Airlines Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.77 | NSC | Norfolk Southern Fiscal Year End 24th of January 2025 | PairCorr |
Moving against Sun Stock
| 0.84 | MESA | Mesa Air Group Fiscal Year End 24th of January 2025 | PairCorr |
| 0.77 | CP | Canadian Pacific Railway | PairCorr |
| 0.61 | FLYX | flyExclusive, | PairCorr |
| 0.41 | AZUL | Azul SA | PairCorr |
Sun Country Market Sensitivity And Downside Risk
Sun Country's beta coefficient measures the volatility of Sun stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Sun stock's returns against your selected market. In other words, Sun Country's beta of 1.3 provides an investor with an approximation of how much risk Sun Country stock can potentially add to one of your existing portfolios. Sun Country Airlines currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.34. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sun Country's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sun Country's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Sun Country Airlines Demand TrendCheck current 90 days Sun Country correlation with market (Dow Jones Industrial)Sun Beta |
Sun standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 3.56 |
It is essential to understand the difference between upside risk (as represented by Sun Country's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sun Country's daily returns or price. Since the actual investment returns on holding a position in sun stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Sun Country.
Sun Country Airlines Stock Volatility Analysis
Volatility refers to the frequency at which Sun Country stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sun Country's price changes. Investors will then calculate the volatility of Sun Country's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Sun Country's volatility:
Historical Volatility
This type of stock volatility measures Sun Country's fluctuations based on previous trends. It's commonly used to predict Sun Country's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Sun Country's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sun Country's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Sun Country Airlines Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Sun Country Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.302 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Sun Country will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sun Country or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sun Country's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sun stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Sun Country Airlines has an alpha of 0.3406, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sun Country Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Sun Country Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sun Country is 718.88. The daily returns are distributed with a variance of 12.66 and standard deviation of 3.56. The mean deviation of Sun Country Airlines is currently at 2.69. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | 1.30 | |
σ | Overall volatility | 3.56 | |
Ir | Information ratio | 0.11 |
Sun Country Stock Return Volatility
Sun Country historical daily return volatility represents how much of Sun Country stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.5578% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sun Country Volatility
Volatility is a rate at which the price of Sun Country or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sun Country may increase or decrease. In other words, similar to Sun's beta indicator, it measures the risk of Sun Country and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sun Country fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 34.1 M | 30.6 M | |
| Market Cap | 873.1 M | 829.5 M |
Sun Country's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Sun Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sun Country's price varies over time.
3 ways to utilize Sun Country's volatility to invest better
Higher Sun Country's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sun Country Airlines stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Sun Country Airlines stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Sun Country Airlines investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sun Country's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Sun Country's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sun Country Investment Opportunity
Sun Country Airlines has a volatility of 3.56 and is 4.56 times more volatile than Dow Jones Industrial. 31 percent of all equities and portfolios are less risky than Sun Country. You can use Sun Country Airlines to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Sun Country to be traded at $17.3 in 90 days.Modest diversification
The correlation between Sun Country Airlines and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and DJI in the same portfolio, assuming nothing else is changed.
Sun Country Additional Risk Indicators
The analysis of Sun Country's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Sun Country's investment and either accepting that risk or mitigating it. Along with some common measures of Sun Country stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1188 | |||
| Market Risk Adjusted Performance | 0.392 | |||
| Mean Deviation | 2.63 | |||
| Semi Deviation | 2.63 | |||
| Downside Deviation | 2.94 | |||
| Coefficient Of Variation | 688.49 | |||
| Standard Deviation | 3.49 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sun Country Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Sun Country as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Sun Country's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Sun Country's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Sun Country Airlines.
Additional Tools for Sun Stock Analysis
When running Sun Country's price analysis, check to measure Sun Country's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sun Country is operating at the current time. Most of Sun Country's value examination focuses on studying past and present price action to predict the probability of Sun Country's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sun Country's price. Additionally, you may evaluate how the addition of Sun Country to your portfolios can decrease your overall portfolio volatility.