Correlation Between Sun Country and Occidental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sun Country Airlines and Occidental Petroleum 645, you can compare the effects of market volatilities on Sun Country and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Occidental.
Diversification Opportunities for Sun Country and Occidental
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Occidental is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Occidental Petroleum 645 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 645 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 645 has no effect on the direction of Sun Country i.e., Sun Country and Occidental go up and down completely randomly.
Pair Corralation between Sun Country and Occidental
Given the investment horizon of 90 days Sun Country is expected to generate 1.3 times less return on investment than Occidental. In addition to that, Sun Country is 3.84 times more volatile than Occidental Petroleum 645. It trades about 0.01 of its total potential returns per unit of risk. Occidental Petroleum 645 is currently generating about 0.05 per unit of volatility. If you would invest 10,361 in Occidental Petroleum 645 on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Occidental Petroleum 645 or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Occidental Petroleum 645
Performance |
| Timeline |
| Sun Country Airlines |
| Occidental Petroleum 645 |
Sun Country and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Occidental
The main advantage of trading using opposite Sun Country and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest | Sun Country vs. Air Transport Services | Sun Country vs. Mesa Air Group |
| Occidental vs. Aquestive Therapeutics | Occidental vs. Grocery Outlet Holding | Occidental vs. Merit Medical Systems | Occidental vs. Cumberland Pharmaceuticals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |