Correlation Between Mayfair Gold and SunOpta

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

By analyzing existing cross correlation between Mayfair Gold Corp and SunOpta, you can compare the effects of market volatilities on Mayfair Gold and SunOpta 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 Mayfair Gold with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and SunOpta.

Diversification Opportunities for Mayfair Gold and SunOpta

-0.58

Correlation Coefficient

Mayfair Gold  SunOpta

Excellent diversification

The 3 months correlation between Mayfair and SunOpta is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Mayfair Gold 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 Mayfair Gold Corp are associated (or correlated) with SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and SunOpta go up and down completely randomly.

Pair Corralation between Mayfair Gold and SunOpta

Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the SunOpta. But the otc stock apears to be less risky and, when comparing its historical volatility, Mayfair Gold Corp is 1.24 times less risky than SunOpta. The otc stock trades about 0.0 of its potential returns per unit of risk. The SunOpta is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  520.00  in SunOpta on October 25, 2024 and sell it today you would earn a total of  205.00  from holding SunOpta or generate 39.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mayfair Gold Corp  vs.  SunOpta

Mayfair Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mayfair Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SunOpta

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, SunOpta disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mayfair Gold and SunOpta

The main advantage of trading using opposite Mayfair Gold and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.

The idea behind Mayfair Gold Corp and SunOpta 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.