Correlation Between Kartoon Studios, and SunOpta

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

By analyzing existing cross correlation between Kartoon Studios, and SunOpta, you can compare the effects of market volatilities on Kartoon Studios, 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 Kartoon Studios, with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kartoon Studios, and SunOpta.

Diversification Opportunities for Kartoon Studios, and SunOpta

-0.57

Correlation Coefficient

Kartoon Studios,  SunOpta

Excellent diversification

The 3 months correlation between Kartoon and SunOpta is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kartoon Studios, and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Kartoon Studios, 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 Kartoon Studios, 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 Kartoon Studios, i.e., Kartoon Studios, and SunOpta go up and down completely randomly.

Pair Corralation between Kartoon Studios, and SunOpta

Given the investment horizon of 90 days Kartoon Studios, is expected to under-perform the SunOpta. In addition to that, Kartoon Studios, is 1.63 times more volatile than SunOpta. It trades about -0.1 of its total potential returns per unit of risk. SunOpta is currently generating about 0.1 per unit of volatility. If you would invest  673.00  in SunOpta on September 15, 2024 and sell it today you would earn a total of  114.00  from holding SunOpta or generate 16.94% return on investment over 90 days.

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

Kartoon Studios,  vs.  SunOpta

Kartoon Studios,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kartoon Studios, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SunOpta

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 8 (%) 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.

Pair Trading with Kartoon Studios, and SunOpta

The main advantage of trading using opposite Kartoon Studios, and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kartoon Studios, 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 Kartoon Studios, 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.