Correlation Between Mesa Air and Sun Life
Can any of the company-specific risk be diversified away by investing in both Mesa Air and Sun Life 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 Mesa Air and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and Sun Life Financial, you can compare the effects of market volatilities on Mesa Air and Sun Life 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 Mesa Air with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Sun Life.
Diversification Opportunities for Mesa Air and Sun Life
Very good diversification
The 3 months correlation between Mesa and Sun is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial and Mesa Air 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 Mesa Air Group are associated (or correlated) with Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Mesa Air i.e., Mesa Air and Sun Life go up and down completely randomly.
Pair Corralation between Mesa Air and Sun Life
Given the investment horizon of 90 days Mesa Air Group is expected to generate 4.0 times more return on investment than Sun Life. However, Mesa Air is 4.0 times more volatile than Sun Life Financial. It trades about 0.26 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.51 per unit of risk. If you would invest 88.00 in Mesa Air Group on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Mesa Air Group or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Sun Life Financial
Performance |
| Timeline |
| Mesa Air Group |
| Sun Life Financial |
Mesa Air and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Sun Life
The main advantage of trading using opposite Mesa Air and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air position performs unexpectedly, Sun Life 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 Life will offset losses from the drop in Sun Life's long position.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |