Correlation Between SunOpta and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both SunOpta and Cadeler AS 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 Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Cadeler AS, you can compare the effects of market volatilities on SunOpta and Cadeler AS 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 Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Cadeler AS.
Diversification Opportunities for SunOpta and Cadeler AS
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and Cadeler is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS 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 Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of SunOpta i.e., SunOpta and Cadeler AS go up and down completely randomly.
Pair Corralation between SunOpta and Cadeler AS
Given the investment horizon of 90 days SunOpta is expected to generate 1.56 times more return on investment than Cadeler AS. However, SunOpta is 1.56 times more volatile than Cadeler AS. It trades about 0.04 of its potential returns per unit of risk. Cadeler AS is currently generating about 0.06 per unit of risk. If you would invest 665.00 in SunOpta on September 24, 2024 and sell it today you would earn a total of 108.00 from holding SunOpta or generate 16.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SunOpta vs. Cadeler AS
Performance |
Timeline |
SunOpta |
Cadeler AS |
SunOpta and Cadeler AS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SunOpta and Cadeler AS
The main advantage of trading using opposite SunOpta and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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