Correlation Between Peoples Educational and SunOpta

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Can any of the company-specific risk be diversified away by investing in both Peoples Educational 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 Peoples Educational and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples Educational Holdings and SunOpta, you can compare the effects of market volatilities on Peoples Educational 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 Peoples Educational with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Educational and SunOpta.

Diversification Opportunities for Peoples Educational and SunOpta

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Peoples and SunOpta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Educational Holdings and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Peoples Educational 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 Peoples Educational Holdings 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 Peoples Educational i.e., Peoples Educational and SunOpta go up and down completely randomly.

Pair Corralation between Peoples Educational and SunOpta

If you would invest  562.00  in SunOpta on September 5, 2024 and sell it today you would earn a total of  210.00  from holding SunOpta or generate 37.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Peoples Educational Holdings  vs.  SunOpta

 Performance 
       Timeline  
Peoples Educational 

Risk-Adjusted Performance

0 of 100

 
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Strong
Very Weak
Over the last 90 days Peoples Educational Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Peoples Educational is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
SunOpta 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 11 (%) 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.

Peoples Educational and SunOpta Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Peoples Educational and SunOpta

The main advantage of trading using opposite Peoples Educational and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Educational 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 Peoples Educational Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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