Correlation Between 12513GBE8 and SunOpta

Can any of the company-specific risk be diversified away by investing in both 12513GBE8 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 12513GBE8 and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CDW LLC 4125 and SunOpta, you can compare the effects of market volatilities on 12513GBE8 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 12513GBE8 with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of 12513GBE8 and SunOpta.

Diversification Opportunities for 12513GBE8 and SunOpta

0.25

Correlation Coefficient

12513GBE8  SunOpta

Modest diversification

The 3 months correlation between 12513GBE8 and SunOpta is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CDW LLC 4125 and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and 12513GBE8 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 CDW LLC 4125 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 12513GBE8 i.e., 12513GBE8 and SunOpta go up and down completely randomly.

Pair Corralation between 12513GBE8 and SunOpta

Assuming the 90 days trading horizon 12513GBE8 is expected to generate 118.59 times less return on investment than SunOpta. But when comparing it to its historical volatility, CDW LLC 4125 is 4.09 times less risky than SunOpta. It trades about 0.01 of its potential returns per unit of risk. SunOpta is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  572.00  in SunOpta on October 23, 2024 and sell it today you would earn a total of  158.00  from holding SunOpta or generate 27.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	76.67%
Values	Daily Returns

CDW LLC 4125  vs.  SunOpta

CDW LLC 4125

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CDW LLC 4125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 12513GBE8 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

SunOpta

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 13 (%) 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 12513GBE8 and SunOpta

The main advantage of trading using opposite 12513GBE8 and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 12513GBE8 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 CDW LLC 4125 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.