Correlation Between Sun Country and NuStar
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By analyzing existing cross correlation between Sun Country Airlines and NuStar Logistics 6, you can compare the effects of market volatilities on Sun Country and NuStar 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 NuStar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and NuStar.
Diversification Opportunities for Sun Country and NuStar
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and NuStar is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and NuStar Logistics 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuStar Logistics 6 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 NuStar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuStar Logistics 6 has no effect on the direction of Sun Country i.e., Sun Country and NuStar go up and down completely randomly.
Pair Corralation between Sun Country and NuStar
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the NuStar. In addition to that, Sun Country is 5.66 times more volatile than NuStar Logistics 6. It trades about -0.01 of its total potential returns per unit of risk. NuStar Logistics 6 is currently generating about -0.01 per unit of volatility. If you would invest 9,973 in NuStar Logistics 6 on September 2, 2024 and sell it today you would lose (232.00) from holding NuStar Logistics 6 or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Sun Country Airlines vs. NuStar Logistics 6
Performance |
| Timeline |
| Sun Country Airlines |
| NuStar Logistics 6 |
Sun Country and NuStar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and NuStar
The main advantage of trading using opposite Sun Country and NuStar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, NuStar 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 NuStar will offset losses from the drop in NuStar's long position.| Sun Country vs. Canadian Pacific Railway | Sun Country vs. Werner Enterprises | Sun Country vs. Canadian National Railway | Sun Country vs. CSX Corporation |
| NuStar vs. United Airlines Holdings | NuStar vs. Oatly Group AB | NuStar vs. TFI International | NuStar vs. Sun Country Airlines |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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