Correlation Between Sun Country and 06738EBU8

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sun Country and 06738EBU8 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 06738EBU8 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 BACR 2279 24 NOV 27, you can compare the effects of market volatilities on Sun Country and 06738EBU8 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 06738EBU8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and 06738EBU8.

Diversification Opportunities for Sun Country and 06738EBU8

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sun and 06738EBU8 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and BACR 2279 24 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BACR 2279 24 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 06738EBU8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BACR 2279 24 has no effect on the direction of Sun Country i.e., Sun Country and 06738EBU8 go up and down completely randomly.

Pair Corralation between Sun Country and 06738EBU8

Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the 06738EBU8. In addition to that, Sun Country is 4.84 times more volatile than BACR 2279 24 NOV 27. It trades about -0.01 of its total potential returns per unit of risk. BACR 2279 24 NOV 27 is currently generating about 0.0 per unit of volatility. If you would invest  8,983  in BACR 2279 24 NOV 27 on September 4, 2024 and sell it today you would earn a total of  20.00  from holding BACR 2279 24 NOV 27 or generate 0.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy93.52%
ValuesDaily Returns

Sun Country Airlines  vs.  BACR 2279 24 NOV 27

 Performance 
       Timeline  
Sun Country Airlines 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Sun Country showed solid returns over the last few months and may actually be approaching a breakup point.
BACR 2279 24 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BACR 2279 24 NOV 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06738EBU8 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sun Country and 06738EBU8 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sun Country and 06738EBU8

The main advantage of trading using opposite Sun Country and 06738EBU8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, 06738EBU8 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 06738EBU8 will offset losses from the drop in 06738EBU8's long position.
Sun Country vs. JetBlue Airways Corp
Sun Country vs. Allegiant Travel
Sun Country vs. Copa Holdings SA
Sun Country vs. SkyWest
The idea behind Sun Country Airlines and BACR 2279 24 NOV 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
06738EBU8 vs. First Watch Restaurant
06738EBU8 vs. Dine Brands Global
06738EBU8 vs. Chipotle Mexican Grill
06738EBU8 vs. Cracker Barrel Old
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY