Correlation Between Sun Country and Polarityte
Can any of the company-specific risk be diversified away by investing in both Sun Country and Polarityte 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 Polarityte 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 Polarityte, you can compare the effects of market volatilities on Sun Country and Polarityte 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 Polarityte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Polarityte.
Diversification Opportunities for Sun Country and Polarityte
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Polarityte is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Polarityte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polarityte 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 Polarityte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polarityte has no effect on the direction of Sun Country i.e., Sun Country and Polarityte go up and down completely randomly.
Pair Corralation between Sun Country and Polarityte
If you would invest 1,387 in Sun Country Airlines on January 24, 2024 and sell it today you would earn a total of 118.00 from holding Sun Country Airlines or generate 8.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.61% |
Values | Daily Returns |
Sun Country Airlines vs. Polarityte
Performance |
Timeline |
Sun Country Airlines |
Polarityte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Country and Polarityte Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Country and Polarityte
The main advantage of trading using opposite Sun Country and Polarityte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Polarityte 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 Polarityte will offset losses from the drop in Polarityte's long position.Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Hawaiian Holdings | Sun Country vs. Allegiant Travel |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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