Correlation Between SUN ART and Air Transport
Can any of the company-specific risk be diversified away by investing in both SUN ART and Air Transport 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 ART and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUN ART RETAIL and Air Transport Services, you can compare the effects of market volatilities on SUN ART and Air Transport 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 ART with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN ART and Air Transport.
Diversification Opportunities for SUN ART and Air Transport
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUN and Air is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SUN ART RETAIL and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and SUN ART 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 ART RETAIL are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of SUN ART i.e., SUN ART and Air Transport go up and down completely randomly.
Pair Corralation between SUN ART and Air Transport
Assuming the 90 days trading horizon SUN ART RETAIL is expected to generate 2.34 times more return on investment than Air Transport. However, SUN ART is 2.34 times more volatile than Air Transport Services. It trades about 0.05 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.0 per unit of risk. If you would invest 10.00 in SUN ART RETAIL on October 13, 2024 and sell it today you would earn a total of 12.00 from holding SUN ART RETAIL or generate 120.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SUN ART RETAIL vs. Air Transport Services
Performance |
| Timeline |
| SUN ART RETAIL |
| Air Transport Services |
SUN ART and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUN ART and Air Transport
The main advantage of trading using opposite SUN ART and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN ART position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| SUN ART vs. CALTAGIRONE EDITORE | SUN ART vs. United States Steel | SUN ART vs. COSMOSTEEL HLDGS | SUN ART vs. INSURANCE AUST GRP |
| Air Transport vs. GREENX METALS LTD | Air Transport vs. Japan Asia Investment | Air Transport vs. AOYAMA TRADING | Air Transport vs. Transport International Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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