Correlation Between Lion One and Sun Country
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Sun Country Airlines, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Sun Country.
Diversification Opportunities for Lion One and Sun Country
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Sun is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals 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 Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Sun Country go up and down completely randomly.
Pair Corralation between Lion One and Sun Country
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Sun Country. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.26 times less risky than Sun Country. The otc stock trades about -0.24 of its potential returns per unit of risk. The 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Sun Country Airlines
Performance |
| Timeline |
| Lion One Metals |
| Sun Country Airlines |
Lion One and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Sun Country
The main advantage of trading using opposite Lion One and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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