Correlation Between Sun Country and Carsales
Can any of the company-specific risk be diversified away by investing in both Sun Country and Carsales 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 Carsales 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 CarsalesCom Ltd ADR, you can compare the effects of market volatilities on Sun Country and Carsales 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 Carsales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Carsales.
Diversification Opportunities for Sun Country and Carsales
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Carsales is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and CarsalesCom Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarsalesCom ADR 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 Carsales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarsalesCom ADR has no effect on the direction of Sun Country i.e., Sun Country and Carsales go up and down completely randomly.
Pair Corralation between Sun Country and Carsales
If you would invest 1,433 in Sun Country Airlines on November 4, 2024 and sell it today you would earn a total of 263.00 from holding Sun Country Airlines or generate 18.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. CarsalesCom Ltd ADR
Performance |
| Timeline |
| Sun Country Airlines |
| CarsalesCom ADR |
Sun Country and Carsales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Carsales
The main advantage of trading using opposite Sun Country and Carsales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Carsales 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 Carsales will offset losses from the drop in Carsales' long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Carsales vs. Quizam Media | Carsales vs. DGTL Holdings | Carsales vs. Tinybeans Group Limited | Carsales vs. Sabio Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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