Correlation Between Intelligent Bio and Sun Country
Can any of the company-specific risk be diversified away by investing in both Intelligent Bio 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 Intelligent Bio and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelligent Bio Solutions and Sun Country Airlines, you can compare the effects of market volatilities on Intelligent Bio 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 Intelligent Bio with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Bio and Sun Country.
Diversification Opportunities for Intelligent Bio and Sun Country
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intelligent and Sun is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Bio Solutions 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 Intelligent Bio 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 Intelligent Bio Solutions 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 Intelligent Bio i.e., Intelligent Bio and Sun Country go up and down completely randomly.
Pair Corralation between Intelligent Bio and Sun Country
Given the investment horizon of 90 days Intelligent Bio is expected to generate 16.85 times less return on investment than Sun Country. In addition to that, Intelligent Bio is 1.69 times more volatile than Sun Country Airlines. It trades about 0.01 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about 0.26 per unit of volatility. If you would invest 996.00 in Sun Country Airlines on September 3, 2024 and sell it today you would earn a total of 443.00 from holding Sun Country Airlines or generate 44.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intelligent Bio Solutions vs. Sun Country Airlines
Performance |
| Timeline |
| Intelligent Bio Solutions |
| Sun Country Airlines |
Intelligent Bio and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelligent Bio and Sun Country
The main advantage of trading using opposite Intelligent Bio and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Bio 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.| Intelligent Bio vs. Harmony Gold Mining | Intelligent Bio vs. Sapiens International | Intelligent Bio vs. SmartStop Self Storage | Intelligent Bio vs. Asure Software |
| Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest | Sun Country vs. Air Transport Services |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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