Correlation Between Sun Country and CECO Environmental
Can any of the company-specific risk be diversified away by investing in both Sun Country and CECO Environmental 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 Sun Country and CECO Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Country Airlines and CECO Environmental Corp, you can compare the effects of market volatilities on Sun Country and CECO Environmental 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 Sun Country with a short position of CECO Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and CECO Environmental.
Diversification Opportunities for Sun Country and CECO Environmental
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and CECO is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and CECO Environmental Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CECO Environmental Corp and Sun Country 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 Sun Country Airlines are associated (or correlated) with CECO Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CECO Environmental Corp has no effect on the direction of Sun Country i.e., Sun Country and CECO Environmental go up and down completely randomly.
Pair Corralation between Sun Country and CECO Environmental
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the CECO Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Sun Country Airlines is 1.06 times less risky than CECO Environmental. The stock trades about -0.07 of its potential returns per unit of risk. The CECO Environmental Corp is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 2,347 in CECO Environmental Corp on September 2, 2024 and sell it today you would earn a total of 858.00 from holding CECO Environmental Corp or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. CECO Environmental Corp
Performance |
| Timeline |
| Sun Country Airlines |
| CECO Environmental Corp |
Sun Country and CECO Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and CECO Environmental
The main advantage of trading using opposite Sun Country and CECO Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, CECO Environmental 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 CECO Environmental will offset losses from the drop in CECO Environmental's long position.| Sun Country vs. Canadian Pacific Railway | Sun Country vs. Werner Enterprises | Sun Country vs. Canadian National Railway | Sun Country vs. CSX Corporation |
| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |