Correlation Between Sun Country and WELLS
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By analyzing existing cross correlation between Sun Country Airlines and WELLS FARGO NEW, you can compare the effects of market volatilities on Sun Country and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and WELLS.
Diversification Opportunities for Sun Country and WELLS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and WELLS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO NEW 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of Sun Country i.e., Sun Country and WELLS go up and down completely randomly.
Pair Corralation between Sun Country and WELLS
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 6.14 times more return on investment than WELLS. However, Sun Country is 6.14 times more volatile than WELLS FARGO NEW. It trades about 0.1 of its potential returns per unit of risk. WELLS FARGO NEW is currently generating about -0.16 per unit of risk. If you would invest 1,304 in Sun Country Airlines on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Sun Country Airlines or generate 6.83% 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. WELLS FARGO NEW
Performance |
| Timeline |
| Sun Country Airlines |
| WELLS FARGO NEW |
Sun Country and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and WELLS
The main advantage of trading using opposite Sun Country and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS'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 |
| WELLS vs. Bridgford Foods | WELLS vs. CT Real Estate | WELLS vs. Sligro Food Group | WELLS vs. National Beverage 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 CEOs Directory module to screen CEOs from public companies around the world.
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