Correlation Between Celsius Holdings and Sun Country
Can any of the company-specific risk be diversified away by investing in both Celsius Holdings 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 Celsius Holdings and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celsius Holdings and Sun Country Airlines, you can compare the effects of market volatilities on Celsius Holdings 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 Celsius Holdings with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celsius Holdings and Sun Country.
Diversification Opportunities for Celsius Holdings and Sun Country
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Celsius and Sun is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings i.e., Celsius Holdings and Sun Country go up and down completely randomly.
Pair Corralation between Celsius Holdings and Sun Country
Given the investment horizon of 90 days Celsius Holdings is expected to under-perform the Sun Country. But the stock apears to be less risky and, when comparing its historical volatility, Celsius Holdings is 1.16 times less risky than Sun Country. The stock trades about -0.16 of its potential returns per unit of risk. The Sun Country Airlines is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,304 in Sun Country Airlines on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Sun Country Airlines or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celsius Holdings vs. Sun Country Airlines
Performance |
| Timeline |
| Celsius Holdings |
| Sun Country Airlines |
Celsius Holdings and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celsius Holdings and Sun Country
The main advantage of trading using opposite Celsius Holdings and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celsius Holdings 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.| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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