Correlation Between Sun Country and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Sun Country and Juniata Valley 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 Juniata Valley 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 Juniata Valley Financial, you can compare the effects of market volatilities on Sun Country and Juniata Valley 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 Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Juniata Valley.
Diversification Opportunities for Sun Country and Juniata Valley
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Juniata is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial 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 Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of Sun Country i.e., Sun Country and Juniata Valley go up and down completely randomly.
Pair Corralation between Sun Country and Juniata Valley
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 1.21 times more return on investment than Juniata Valley. However, Sun Country is 1.21 times more volatile than Juniata Valley Financial. It trades about 0.38 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about -0.19 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Juniata Valley Financial
Performance |
| Timeline |
| Sun Country Airlines |
| Juniata Valley Financial |
Sun Country and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Juniata Valley
The main advantage of trading using opposite Sun Country and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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