Correlation Between Kite Realty and Sun Country
Can any of the company-specific risk be diversified away by investing in both Kite Realty 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 Kite Realty and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kite Realty Group and Sun Country Airlines, you can compare the effects of market volatilities on Kite Realty 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 Kite Realty with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kite Realty and Sun Country.
Diversification Opportunities for Kite Realty and Sun Country
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kite and Sun is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kite Realty Group 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 Kite Realty 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 Kite Realty Group 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 Kite Realty i.e., Kite Realty and Sun Country go up and down completely randomly.
Pair Corralation between Kite Realty and Sun Country
Considering the 90-day investment horizon Kite Realty is expected to generate 1.99 times less return on investment than Sun Country. But when comparing it to its historical volatility, Kite Realty Group is 3.86 times less risky than Sun Country. It trades about 0.31 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,278 in Sun Country Airlines on August 31, 2024 and sell it today you would earn a total of 164.00 from holding Sun Country Airlines or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kite Realty Group vs. Sun Country Airlines
Performance |
| Timeline |
| Kite Realty Group |
| Sun Country Airlines |
Kite Realty and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kite Realty and Sun Country
The main advantage of trading using opposite Kite Realty and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kite Realty 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.| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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