Correlation Between Genfit and Sun Country
Can any of the company-specific risk be diversified away by investing in both Genfit 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 Genfit and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Sun Country Airlines, you can compare the effects of market volatilities on Genfit 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 Genfit with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Sun Country.
Diversification Opportunities for Genfit and Sun Country
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genfit and Sun is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Genfit 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 Genfit 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 Genfit 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 Genfit i.e., Genfit and Sun Country go up and down completely randomly.
Pair Corralation between Genfit and Sun Country
Given the investment horizon of 90 days Genfit is expected to under-perform the Sun Country. In addition to that, Genfit is 1.38 times more volatile than Sun Country Airlines. It trades about -0.03 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about 0.34 per unit of volatility. If you would invest 1,453 in Sun Country Airlines on November 3, 2024 and sell it today you would earn a total of 243.00 from holding Sun Country Airlines or generate 16.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Sun Country Airlines
Performance |
| Timeline |
| Genfit |
| Sun Country Airlines |
Genfit and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Sun Country
The main advantage of trading using opposite Genfit and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit 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.| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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