Correlation Between PGE Corp and Sun Country
Can any of the company-specific risk be diversified away by investing in both PGE 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 PGE 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 PGE Corp and Sun Country Airlines, you can compare the effects of market volatilities on PGE 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 PGE Corp with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and Sun Country.
Diversification Opportunities for PGE Corp and Sun Country
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PGE and Sun is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PGE 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 PGE 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 PGE 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 PGE Corp i.e., PGE Corp and Sun Country go up and down completely randomly.
Pair Corralation between PGE Corp and Sun Country
Considering the 90-day investment horizon PGE Corp is expected to generate 1.68 times less return on investment than Sun Country. But when comparing it to its historical volatility, PGE Corp is 4.04 times less risky than Sun Country. It trades about 0.22 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,304 in Sun Country Airlines on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Sun Country Airlines or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGE Corp vs. Sun Country Airlines
Performance |
| Timeline |
| PGE Corp |
| Sun Country Airlines |
PGE Corp and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and Sun Country
The main advantage of trading using opposite PGE Corp and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE 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.| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
| Sun Country vs. JetBlue Airways Corp | Sun Country vs. SkyWest | Sun Country vs. International Consolidated Airlines | Sun Country vs. Spirit Airlines |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |