Correlation Between Cumulus Media and Sun Country
Can any of the company-specific risk be diversified away by investing in both Cumulus Media 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 Cumulus Media and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Sun Country Airlines, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Sun Country.
Diversification Opportunities for Cumulus Media and Sun Country
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cumulus and Sun is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class 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 Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and Sun Country go up and down completely randomly.
Pair Corralation between Cumulus Media and Sun Country
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Sun Country. In addition to that, Cumulus Media is 1.43 times more volatile than Sun Country Airlines. It trades about -0.08 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about -0.02 per unit of volatility. If you would invest 1,909 in Sun Country Airlines on January 13, 2025 and sell it today you would lose (874.00) from holding Sun Country Airlines or give up 45.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. Sun Country Airlines
Performance |
| Timeline |
| Cumulus Media Class |
| Sun Country Airlines |
Cumulus Media and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Sun Country
The main advantage of trading using opposite Cumulus Media and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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