Correlation Between Socket Mobile and Sun Country
Can any of the company-specific risk be diversified away by investing in both Socket Mobile 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 Socket Mobile and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Socket Mobile and Sun Country Airlines, you can compare the effects of market volatilities on Socket Mobile 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 Socket Mobile with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socket Mobile and Sun Country.
Diversification Opportunities for Socket Mobile and Sun Country
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Socket and Sun is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Socket Mobile 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 Socket Mobile 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 Socket Mobile 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 Socket Mobile i.e., Socket Mobile and Sun Country go up and down completely randomly.
Pair Corralation between Socket Mobile and Sun Country
Given the investment horizon of 90 days Socket Mobile is expected to generate 4.83 times less return on investment than Sun Country. In addition to that, Socket Mobile is 1.19 times more volatile than Sun Country Airlines. It trades about 0.02 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about 0.13 per unit of volatility. If you would invest 1,098 in Sun Country Airlines on November 28, 2024 and sell it today you would earn a total of 576.00 from holding Sun Country Airlines or generate 52.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Socket Mobile vs. Sun Country Airlines
Performance |
| Timeline |
| Socket Mobile |
| Sun Country Airlines |
Socket Mobile and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Socket Mobile and Sun Country
The main advantage of trading using opposite Socket Mobile and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socket Mobile 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.| Socket Mobile vs. Cricut Inc | Socket Mobile vs. Nano Dimension | Socket Mobile vs. IONQ Inc | Socket Mobile vs. AGM Group Holdings |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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