Correlation Between Sun Country and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Sun Country and Harmony Gold 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 Harmony Gold 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 Harmony Gold Mining, you can compare the effects of market volatilities on Sun Country and Harmony Gold 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 Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Harmony Gold.
Diversification Opportunities for Sun Country and Harmony Gold
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sun and Harmony is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining 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 Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Sun Country i.e., Sun Country and Harmony Gold go up and down completely randomly.
Pair Corralation between Sun Country and Harmony Gold
If you would invest 1,362 in Sun Country Airlines on September 20, 2024 and sell it today you would earn a total of 71.00 from holding Sun Country Airlines or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Harmony Gold Mining
Performance |
| Timeline |
| Sun Country Airlines |
| Harmony Gold Mining |
Sun Country and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Harmony Gold
The main advantage of trading using opposite Sun Country and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Harmony Gold vs. Delek Logistics Partners | Harmony Gold vs. Nexstar Broadcasting Group | Harmony Gold vs. Afya | Harmony Gold vs. Sun Country Airlines |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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