Correlation Between Hawaiian Holdings and Sun Country
Can any of the company-specific risk be diversified away by investing in both Hawaiian 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 Hawaiian 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 Hawaiian Holdings and Sun Country Airlines, you can compare the effects of market volatilities on Hawaiian 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 Hawaiian Holdings with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Holdings and Sun Country.
Diversification Opportunities for Hawaiian Holdings and Sun Country
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hawaiian and Sun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian 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 Hawaiian 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 Hawaiian 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 Hawaiian Holdings i.e., Hawaiian Holdings and Sun Country go up and down completely randomly.
Pair Corralation between Hawaiian Holdings and Sun Country
Allowing for the 90-day total investment horizon Hawaiian Holdings is expected to generate 4.18 times more return on investment than Sun Country. However, Hawaiian Holdings is 4.18 times more volatile than Sun Country Airlines. It trades about 0.08 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.0 per unit of risk. If you would invest 486.00 in Hawaiian Holdings on August 27, 2024 and sell it today you would earn a total of 1,314 from holding Hawaiian Holdings or generate 270.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 80.65% |
| Values | Daily Returns |
Hawaiian Holdings vs. Sun Country Airlines
Performance |
| Timeline |
| Hawaiian Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Sun Country Airlines |
Hawaiian Holdings and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Holdings and Sun Country
The main advantage of trading using opposite Hawaiian Holdings and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian 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.| Hawaiian Holdings vs. Southwest Airlines | Hawaiian Holdings vs. JetBlue Airways Corp | Hawaiian Holdings vs. United Airlines Holdings | Hawaiian Holdings vs. Delta Air Lines |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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