Correlation Between Nextplat Corp and Sun Country
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp 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 Nextplat Corp and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Sun Country Airlines, you can compare the effects of market volatilities on Nextplat Corp 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 Nextplat Corp with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Sun Country.
Diversification Opportunities for Nextplat Corp and Sun Country
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextplat and Sun is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and Sun Country go up and down completely randomly.
Pair Corralation between Nextplat Corp and Sun Country
Given the investment horizon of 90 days Nextplat Corp is expected to generate 1.65 times more return on investment than Sun Country. However, Nextplat Corp is 1.65 times more volatile than Sun Country Airlines. It trades about 0.0 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.0 per unit of risk. If you would invest 155.00 in Nextplat Corp on August 30, 2024 and sell it today you would lose (70.00) from holding Nextplat Corp or give up 45.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Sun Country Airlines
Performance |
| Timeline |
| Nextplat Corp |
| Sun Country Airlines |
Nextplat Corp and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Sun Country
The main advantage of trading using opposite Nextplat Corp and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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.| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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