Correlation Between Sun Country and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Sun Country and Victorias Secret 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 Victorias Secret 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 Victorias Secret Co, you can compare the effects of market volatilities on Sun Country and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Victorias Secret.
Diversification Opportunities for Sun Country and Victorias Secret
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sun and Victorias is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of Sun Country i.e., Sun Country and Victorias Secret go up and down completely randomly.
Pair Corralation between Sun Country and Victorias Secret
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the Victorias Secret. In addition to that, Sun Country is 1.13 times more volatile than Victorias Secret Co. It trades about -0.07 of its total potential returns per unit of risk. Victorias Secret Co is currently generating about 0.4 per unit of volatility. If you would invest 3,151 in Victorias Secret Co on September 2, 2024 and sell it today you would earn a total of 733.00 from holding Victorias Secret Co or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Victorias Secret Co
Performance |
| Timeline |
| Sun Country Airlines |
| Victorias Secret |
Sun Country and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Victorias Secret
The main advantage of trading using opposite Sun Country and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret'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 |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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