Correlation Between Sun Country and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Sun Country and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical 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 Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Sun Country and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Oasmia Pharmaceutical.
Diversification Opportunities for Sun Country and Oasmia Pharmaceutical
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Oasmia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Sun Country i.e., Sun Country and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between Sun Country and Oasmia Pharmaceutical
If you would invest 6.00 in Oasmia Pharmaceutical AB on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Oasmia Pharmaceutical AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sun Country Airlines vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| Sun Country Airlines |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Country and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Oasmia Pharmaceutical
The main advantage of trading using opposite Sun Country and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
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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.
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