Correlation Between Sun Country and OZ Minerals
Can any of the company-specific risk be diversified away by investing in both Sun Country and OZ Minerals 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 OZ Minerals 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 OZ Minerals Limited, you can compare the effects of market volatilities on Sun Country and OZ Minerals 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 OZ Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and OZ Minerals.
Diversification Opportunities for Sun Country and OZ Minerals
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sun and OZMLF is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of Sun Country i.e., Sun Country and OZ Minerals go up and down completely randomly.
Pair Corralation between Sun Country and OZ Minerals
If you would invest 1,507 in Sun Country Airlines on October 24, 2024 and sell it today you would earn a total of 156.00 from holding Sun Country Airlines or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Sun Country Airlines vs. OZ Minerals Limited
Performance |
| Timeline |
| Sun Country Airlines |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Country and OZ Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and OZ Minerals
The main advantage of trading using opposite Sun Country and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| OZ Minerals vs. 51Talk Online Education | OZ Minerals vs. Delta Air Lines | OZ Minerals vs. Sun Country Airlines | OZ Minerals vs. Allegiant Travel |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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