Correlation Between PAMT P and Sun Country

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

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

Diversification Opportunities for PAMT P and Sun Country

0.07

Correlation Coefficient

PAMT P  Sun Country

Significant diversification

The 3 months correlation between PAMT and Sun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PAMT P 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 PAMT P 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 PAMT P 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 PAMT P i.e., PAMT P and Sun Country go up and down completely randomly.

Pair Corralation between PAMT P and Sun Country

Given the investment horizon of 90 days PAMT P is expected to under-perform the Sun Country. In addition to that, PAMT P is 1.26 times more volatile than Sun Country Airlines. It trades about -0.1 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about 0.05 per unit of volatility. If you would invest  1,096  in Sun Country Airlines on May 2, 2025 and sell it today you would earn a total of  63.00  from holding Sun Country Airlines or generate 5.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PAMT P  vs.  Sun Country Airlines

PAMT P

Risk-Adjusted Performance

Very Weak

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Sun Country Airlines

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Sun Country may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PAMT P and Sun Country

The main advantage of trading using opposite PAMT P and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAMT P 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 PAMT P 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.