Correlation Between Beyond Meat and SunOpta
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and SunOpta, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and SunOpta.
Diversification Opportunities for Beyond Meat and SunOpta
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beyond and SunOpta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and SunOpta go up and down completely randomly.
Pair Corralation between Beyond Meat and SunOpta
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the SunOpta. In addition to that, Beyond Meat is 1.33 times more volatile than SunOpta. It trades about -0.22 of its total potential returns per unit of risk. SunOpta is currently generating about 0.38 per unit of volatility. If you would invest 598.00 in SunOpta on August 28, 2024 and sell it today you would earn a total of 174.00 from holding SunOpta or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. SunOpta
Performance |
| Timeline |
| Beyond Meat |
| SunOpta |
Beyond Meat and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and SunOpta
The main advantage of trading using opposite Beyond Meat and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. Bellring Brands LLC | Beyond Meat vs. Ingredion Incorporated | Beyond Meat vs. Nomad Foods | Beyond Meat vs. Simply Good Foods |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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