Correlation Between Sun Country and Micro Imaging
Can any of the company-specific risk be diversified away by investing in both Sun Country and Micro Imaging 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 Micro Imaging 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 Micro Imaging Technology, you can compare the effects of market volatilities on Sun Country and Micro Imaging 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 Micro Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Micro Imaging.
Diversification Opportunities for Sun Country and Micro Imaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Micro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Micro Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Imaging Technology 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 Micro Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Imaging Technology has no effect on the direction of Sun Country i.e., Sun Country and Micro Imaging go up and down completely randomly.
Pair Corralation between Sun Country and Micro Imaging
If you would invest 1,531 in Sun Country Airlines on September 14, 2024 and sell it today you would lose (5.00) from holding Sun Country Airlines or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sun Country Airlines vs. Micro Imaging Technology
Performance |
| Timeline |
| Sun Country Airlines |
| Micro Imaging Technology |
Sun Country and Micro Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Micro Imaging
The main advantage of trading using opposite Sun Country and Micro Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Micro Imaging 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 Micro Imaging will offset losses from the drop in Micro Imaging's long position.| Sun Country vs. American Airlines Group | Sun Country vs. Southwest Airlines | Sun Country vs. United Airlines Holdings | Sun Country vs. Frontier Group Holdings |
| Micro Imaging vs. Constellation Brands Class | Micro Imaging vs. The Cheesecake Factory | Micro Imaging vs. Westrock Coffee | Micro Imaging vs. Playa Hotels Resorts |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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