Correlation Between John B and SunOpta
Can any of the company-specific risk be diversified away by investing in both John B 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 John B and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John B Sanfilippo and SunOpta, you can compare the effects of market volatilities on John B 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 John B with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of John B and SunOpta.
Diversification Opportunities for John B and SunOpta
Very good diversification
The 3 months correlation between John and SunOpta is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and John B 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 John B Sanfilippo 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 John B i.e., John B and SunOpta go up and down completely randomly.
Pair Corralation between John B and SunOpta
Given the investment horizon of 90 days John B Sanfilippo is expected to under-perform the SunOpta. In addition to that, John B is 1.73 times more volatile than SunOpta. It trades about -0.28 of its total potential returns per unit of risk. SunOpta is currently generating about -0.14 per unit of volatility. If you would invest 774.00 in SunOpta on November 3, 2024 and sell it today you would lose (41.00) from holding SunOpta or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John B Sanfilippo vs. SunOpta
Performance |
| Timeline |
| John B Sanfilippo |
| SunOpta |
John B and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John B and SunOpta
The main advantage of trading using opposite John B and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John B 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.| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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