Correlation Between Sun Country and ATRenew
Can any of the company-specific risk be diversified away by investing in both Sun Country and ATRenew 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 ATRenew 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 ATRenew Inc DRC, you can compare the effects of market volatilities on Sun Country and ATRenew 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 ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and ATRenew.
Diversification Opportunities for Sun Country and ATRenew
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and ATRenew is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC 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 ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Sun Country i.e., Sun Country and ATRenew go up and down completely randomly.
Pair Corralation between Sun Country and ATRenew
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 0.92 times more return on investment than ATRenew. However, Sun Country Airlines is 1.09 times less risky than ATRenew. It trades about 0.11 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.07 per unit of risk. If you would invest 1,304 in Sun Country Airlines on August 28, 2024 and sell it today you would earn a total of 101.00 from holding Sun Country Airlines or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. ATRenew Inc DRC
Performance |
| Timeline |
| Sun Country Airlines |
| ATRenew Inc DRC |
Sun Country and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and ATRenew
The main advantage of trading using opposite Sun Country and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew'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 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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