Correlation Between Sun Country and Deluxe
Can any of the company-specific risk be diversified away by investing in both Sun Country and Deluxe 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 Deluxe 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 Deluxe, you can compare the effects of market volatilities on Sun Country and Deluxe 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 Deluxe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Deluxe.
Diversification Opportunities for Sun Country and Deluxe
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Deluxe is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Deluxe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deluxe 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 Deluxe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deluxe has no effect on the direction of Sun Country i.e., Sun Country and Deluxe go up and down completely randomly.
Pair Corralation between Sun Country and Deluxe
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 1.33 times more return on investment than Deluxe. However, Sun Country is 1.33 times more volatile than Deluxe. It trades about 0.38 of its potential returns per unit of risk. Deluxe is currently generating about 0.07 per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Deluxe
Performance |
| Timeline |
| Sun Country Airlines |
| Deluxe |
Sun Country and Deluxe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Deluxe
The main advantage of trading using opposite Sun Country and Deluxe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Deluxe 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 Deluxe will offset losses from the drop in Deluxe's long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |