Correlation Between Sun Country and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Sun Country and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on Sun Country and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Celsius Holdings.
Diversification Opportunities for Sun Country and Celsius Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Celsius is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Sun Country i.e., Sun Country and Celsius Holdings go up and down completely randomly.
Pair Corralation between Sun Country and Celsius Holdings
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 1.16 times more return on investment than Celsius Holdings. However, Sun Country is 1.16 times more volatile than Celsius Holdings. It trades about 0.1 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.16 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Celsius Holdings
Performance |
| Timeline |
| Sun Country Airlines |
| Celsius Holdings |
Sun Country and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Celsius Holdings
The main advantage of trading using opposite Sun Country and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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