Correlation Between SunOpta and Reitar Logtech

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

By analyzing existing cross correlation between SunOpta and Reitar Logtech Holdings, you can compare the effects of market volatilities on SunOpta and Reitar Logtech 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 Reitar Logtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Reitar Logtech.

Diversification Opportunities for SunOpta and Reitar Logtech

0.46

Correlation Coefficient

SunOpta  Reitar Logtech

Very weak diversification

The 3 months correlation between SunOpta and Reitar is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of SunOpta i.e., SunOpta and Reitar Logtech go up and down completely randomly.

Pair Corralation between SunOpta and Reitar Logtech

Given the investment horizon of 90 days SunOpta is expected to under-perform the Reitar Logtech. But the stock apears to be less risky and, when comparing its historical volatility, SunOpta is 2.42 times less risky than Reitar Logtech. The stock trades about -0.2 of its potential returns per unit of risk. The Reitar Logtech Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  393.00  in Reitar Logtech Holdings on December 21, 2024 and sell it today you would lose (63.00) from holding Reitar Logtech Holdings or give up 16.03% of portfolio value over 90 days.

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

SunOpta  vs.  Reitar Logtech Holdings

SunOpta

Risk-Adjusted Performance

Very Weak

Over the last 90 days SunOpta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Reitar Logtech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reitar Logtech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Reitar Logtech is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SunOpta and Reitar Logtech

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

The idea behind SunOpta and Reitar Logtech Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.