Correlation Between Sun Country and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both Sun Country and Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming, you can compare the effects of market volatilities on Sun Country and Contagious Gaming 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 Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Contagious Gaming.
Diversification Opportunities for Sun Country and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming 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 Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Sun Country i.e., Sun Country and Contagious Gaming go up and down completely randomly.
Pair Corralation between Sun Country and Contagious Gaming
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 1.1 times more return on investment than Contagious Gaming. However, Sun Country is 1.1 times more volatile than Contagious Gaming. It trades about 0.0 of its potential returns per unit of risk. Contagious Gaming is currently generating about -0.06 per unit of risk. If you would invest 1,572 in Sun Country Airlines on August 27, 2024 and sell it today you would lose (199.00) from holding Sun Country Airlines or give up 12.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Contagious Gaming
Performance |
| Timeline |
| Sun Country Airlines |
| Contagious Gaming |
Sun Country and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Contagious Gaming
The main advantage of trading using opposite Sun Country and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
| Contagious Gaming vs. FitLife Brands, Common | Contagious Gaming vs. HUMANA INC | Contagious Gaming vs. SCOR PK | Contagious Gaming vs. Aquagold International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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