Correlation Between NanoTech Gaming and Sun Country

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

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

Diversification Opportunities for NanoTech Gaming and Sun Country

0.0

Correlation Coefficient

NanoTech Gaming  Sun Country

Pay attention - limited upside

The 3 months correlation between NanoTech and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NanoTech Gaming 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 NanoTech Gaming 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 NanoTech Gaming 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 NanoTech Gaming i.e., NanoTech Gaming and Sun Country go up and down completely randomly.

Pair Corralation between NanoTech Gaming and Sun Country

If you would invest  0.01  in NanoTech Gaming on February 15, 2024 and sell it today you would earn a total of  0.00  from holding NanoTech Gaming or generate 0.0% return on investment over 90 days.

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

NanoTech Gaming  vs.  Sun Country Airlines

NanoTech Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NanoTech Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, NanoTech Gaming is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Sun Country Airlines

Risk-Adjusted Performance

0 of 100

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 June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with NanoTech Gaming and Sun Country

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

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.