Correlation Between SunOpta and Canada Goose
Can any of the company-specific risk be diversified away by investing in both SunOpta and Canada Goose 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 SunOpta and Canada Goose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Canada Goose Holdings, you can compare the effects of market volatilities on SunOpta and Canada Goose 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 SunOpta with a short position of Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Canada Goose.
Diversification Opportunities for SunOpta and Canada Goose
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SunOpta and Canada is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and SunOpta 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 SunOpta are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of SunOpta i.e., SunOpta and Canada Goose go up and down completely randomly.
Pair Corralation between SunOpta and Canada Goose
Assuming the 90 days trading horizon SunOpta is expected to generate 1.04 times more return on investment than Canada Goose. However, SunOpta is 1.04 times more volatile than Canada Goose Holdings. It trades about 0.13 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about 0.01 per unit of risk. If you would invest 904.00 in SunOpta on September 13, 2024 and sell it today you would earn a total of 199.00 from holding SunOpta or generate 22.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SunOpta vs. Canada Goose Holdings
Performance |
Timeline |
SunOpta |
Canada Goose Holdings |
SunOpta and Canada Goose Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SunOpta and Canada Goose
The main advantage of trading using opposite SunOpta and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.SunOpta vs. Winpak | SunOpta vs. Canaccord Genuity Group | SunOpta vs. Altus Group Limited | SunOpta vs. Martinrea International |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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