Correlation Between AT S and Sun Country

Can any of the company-specific risk be diversified away by investing in both AT S 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 AT S and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AT S Austria and Sun Country Airlines, you can compare the effects of market volatilities on AT S 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 AT S with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Sun Country.

Diversification Opportunities for AT S and Sun Country

-0.29

Correlation Coefficient

AT S  Sun Country

Very good diversification

The 3 months correlation between ATS and Sun is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria 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 AT S 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 AT S Austria 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 AT S i.e., AT S and Sun Country go up and down completely randomly.

Pair Corralation between AT S and Sun Country

Assuming the 90 days trading horizon AT S Austria is expected to generate 1.01 times more return on investment than Sun Country. However, AT S is 1.01 times more volatile than Sun Country Airlines. It trades about 0.04 of its potential returns per unit of risk. Sun Country Airlines is currently generating about -0.23 per unit of risk. If you would invest  1,127  in AT S Austria on January 9, 2025 and sell it today you would earn a total of  67.00  from holding AT S Austria or generate 5.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

AT S Austria  vs.  Sun Country Airlines

AT S Austria

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AT S Austria are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, AT S may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Sun Country Airlines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sun Country Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AT S and Sun Country

The main advantage of trading using opposite AT S and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S 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.

The idea behind AT S Austria and Sun Country Airlines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.