Correlation Between Sun Country and Funai Electric

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

Diversification Opportunities for Sun Country and Funai Electric

0.0

Correlation Coefficient

Sun Country  Funai Electric

Pay attention - limited upside

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

Pair Corralation between Sun Country and Funai Electric

If you would invest (100.00) in Funai Electric Co on February 21, 2024 and sell it today you would earn a total of  100.00  from holding Funai Electric Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sun Country Airlines  vs.  Funai Electric Co

Sun Country Airlines

Risk-Adjusted Performance

0 of 100

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 June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Funai Electric

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Funai Electric Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Funai Electric 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 Funai Electric

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

The idea behind Sun Country Airlines and Funai Electric Co 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.