Correlation Between Marine Products and Sun Country
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Sun Country Airlines, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Sun Country.
Diversification Opportunities for Marine Products and Sun Country
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marine and Sun is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Sun Country go up and down completely randomly.
Pair Corralation between Marine Products and Sun Country
Considering the 90-day investment horizon Marine Products is expected to generate 0.4 times more return on investment than Sun Country. However, Marine Products is 2.48 times less risky than Sun Country. It trades about -0.19 of its potential returns per unit of risk. Sun Country Airlines is currently generating about -0.28 per unit of risk. If you would invest 854.00 in Marine Products on January 7, 2025 and sell it today you would lose (60.00) from holding Marine Products or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Sun Country Airlines
Performance |
| Timeline |
| Marine Products |
| Sun Country Airlines |
Marine Products and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Sun Country
The main advantage of trading using opposite Marine Products and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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