Correlation Between SunOpta and 866677AJ6

Can any of the company-specific risk be diversified away by investing in both SunOpta and 866677AJ6 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 866677AJ6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SunOpta and SUI 57 15 JAN 33, you can compare the effects of market volatilities on SunOpta and 866677AJ6 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 866677AJ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and 866677AJ6.

Diversification Opportunities for SunOpta and 866677AJ6

-0.63

Correlation Coefficient

SunOpta  866677AJ6

Excellent diversification

The 3 months correlation between SunOpta and 866677AJ6 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and SUI 57 15 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUI 57 15 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 866677AJ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUI 57 15 has no effect on the direction of SunOpta i.e., SunOpta and 866677AJ6 go up and down completely randomly.

Pair Corralation between SunOpta and 866677AJ6

Given the investment horizon of 90 days SunOpta is expected to generate 5.23 times more return on investment than 866677AJ6. However, SunOpta is 5.23 times more volatile than SUI 57 15 JAN 33. It trades about 0.11 of its potential returns per unit of risk. SUI 57 15 JAN 33 is currently generating about -0.01 per unit of risk. If you would invest  526.00  in SunOpta on September 29, 2024 and sell it today you would earn a total of  255.00  from holding SunOpta or generate 48.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	73.81%
Values	Daily Returns

SunOpta  vs.  SUI 57 15 JAN 33

SunOpta

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 10 (%) 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.

SUI 57 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUI 57 15 JAN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 866677AJ6 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SunOpta and 866677AJ6

The main advantage of trading using opposite SunOpta and 866677AJ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, 866677AJ6 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 866677AJ6 will offset losses from the drop in 866677AJ6's long position.

The idea behind SunOpta and SUI 57 15 JAN 33 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.