Correlation Between Treasury Wine and Sun Country
Can any of the company-specific risk be diversified away by investing in both Treasury Wine and Sun Country 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 Treasury Wine and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treasury Wine Estates and Sun Country Airlines, you can compare the effects of market volatilities on Treasury Wine and Sun Country 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 Treasury Wine with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treasury Wine and Sun Country.
Diversification Opportunities for Treasury Wine and Sun Country
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Treasury and Sun is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines and Treasury Wine 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 Treasury Wine Estates are associated (or correlated) with Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Treasury Wine i.e., Treasury Wine and Sun Country go up and down completely randomly.
Pair Corralation between Treasury Wine and Sun Country
Assuming the 90 days horizon Treasury Wine Estates is expected to under-perform the Sun Country. But the pink sheet apears to be less risky and, when comparing its historical volatility, Treasury Wine Estates is 1.6 times less risky than Sun Country. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Sun Country Airlines is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,084 in Sun Country Airlines on September 2, 2024 and sell it today you would earn a total of 355.00 from holding Sun Country Airlines or generate 32.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Treasury Wine Estates vs. Sun Country Airlines
Performance |
| Timeline |
| Treasury Wine Estates |
| Sun Country Airlines |
Treasury Wine and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treasury Wine and Sun Country
The main advantage of trading using opposite Treasury Wine and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.| Treasury Wine vs. Diageo PLC ADR | Treasury Wine vs. Pernod Ricard SA | Treasury Wine vs. Constellation Brands Class | Treasury Wine vs. Brown Forman |
| Sun Country vs. Canadian Pacific Railway | Sun Country vs. Werner Enterprises | Sun Country vs. Canadian National Railway | Sun Country vs. CSX Corporation |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |