Correlation Between Sun Country and Uranium Energy
Can any of the company-specific risk be diversified away by investing in both Sun Country and Uranium Energy 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 Uranium Energy 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 Uranium Energy Corp, you can compare the effects of market volatilities on Sun Country and Uranium Energy 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 Uranium Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Uranium Energy.
Diversification Opportunities for Sun Country and Uranium Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Uranium is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Uranium Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uranium Energy Corp 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 Uranium Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uranium Energy Corp has no effect on the direction of Sun Country i.e., Sun Country and Uranium Energy go up and down completely randomly.
Pair Corralation between Sun Country and Uranium Energy
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 0.47 times more return on investment than Uranium Energy. However, Sun Country Airlines is 2.14 times less risky than Uranium Energy. It trades about 0.33 of its potential returns per unit of risk. Uranium Energy Corp is currently generating about 0.1 per unit of risk. If you would invest 1,458 in Sun Country Airlines on November 1, 2024 and sell it today you would earn a total of 229.00 from holding Sun Country Airlines or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Uranium Energy Corp
Performance |
| Timeline |
| Sun Country Airlines |
| Uranium Energy Corp |
Sun Country and Uranium Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Uranium Energy
The main advantage of trading using opposite Sun Country and Uranium Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Uranium Energy 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 Uranium Energy will offset losses from the drop in Uranium Energy's long position.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Uranium Energy vs. Energy Fuels | Uranium Energy vs. Denison Mines Corp | Uranium Energy vs. Ur Energy | Uranium Energy vs. Cameco Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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