Correlation Between Sun Country and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Sun Country and Meiwu Technology 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 Meiwu Technology 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 Meiwu Technology Co, you can compare the effects of market volatilities on Sun Country and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Meiwu Technology.
Diversification Opportunities for Sun Country and Meiwu Technology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Meiwu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Sun Country i.e., Sun Country and Meiwu Technology go up and down completely randomly.
Pair Corralation between Sun Country and Meiwu Technology
Given the investment horizon of 90 days Sun Country Airlines is expected to generate 0.38 times more return on investment than Meiwu Technology. However, Sun Country Airlines is 2.63 times less risky than Meiwu Technology. It trades about 0.01 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.0 per unit of risk. If you would invest 1,596 in Sun Country Airlines on September 13, 2024 and sell it today you would lose (20.00) from holding Sun Country Airlines or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Meiwu Technology Co
Performance |
| Timeline |
| Sun Country Airlines |
| Meiwu Technology |
Sun Country and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Meiwu Technology
The main advantage of trading using opposite Sun Country and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| Sun Country vs. American Airlines Group | Sun Country vs. Southwest Airlines | Sun Country vs. United Airlines Holdings | Sun Country vs. Frontier Group Holdings |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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