Correlation Between Aeye and SunOpta
Can any of the company-specific risk be diversified away by investing in both Aeye 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 Aeye and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and SunOpta, you can compare the effects of market volatilities on Aeye 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 Aeye with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and SunOpta.
Diversification Opportunities for Aeye and SunOpta
Excellent diversification
The 3 months correlation between Aeye and SunOpta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Aeye 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 Aeye Inc 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 Aeye i.e., Aeye and SunOpta go up and down completely randomly.
Pair Corralation between Aeye and SunOpta
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the SunOpta. In addition to that, Aeye is 2.92 times more volatile than SunOpta. It trades about -0.02 of its total potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of volatility. If you would invest 930.00 in SunOpta on August 31, 2024 and sell it today you would lose (155.00) from holding SunOpta or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeye Inc vs. SunOpta
Performance |
| Timeline |
| Aeye Inc |
| SunOpta |
Aeye and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and SunOpta
The main advantage of trading using opposite Aeye and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye 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.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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