Correlation Between Mativ Holdings and Sun Country
Can any of the company-specific risk be diversified away by investing in both Mativ 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 Mativ 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 Mativ Holdings and Sun Country Airlines, you can compare the effects of market volatilities on Mativ 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 Mativ Holdings with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Sun Country.
Diversification Opportunities for Mativ Holdings and Sun Country
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Sun is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mativ 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 Mativ 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 Mativ 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 Mativ Holdings i.e., Mativ Holdings and Sun Country go up and down completely randomly.
Pair Corralation between Mativ Holdings and Sun Country
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Sun Country. In addition to that, Mativ Holdings is 1.23 times more volatile than Sun Country Airlines. It trades about 0.0 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about 0.0 per unit of volatility. If you would invest 1,858 in Sun Country Airlines on September 3, 2024 and sell it today you would lose (419.00) from holding Sun Country Airlines or give up 22.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Sun Country Airlines
Performance |
| Timeline |
| Mativ Holdings |
| Sun Country Airlines |
Mativ Holdings and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Sun Country
The main advantage of trading using opposite Mativ Holdings and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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