Correlation Between Everspin Technologies and SunOpta
Can any of the company-specific risk be diversified away by investing in both Everspin Technologies 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 Everspin Technologies and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everspin Technologies and SunOpta, you can compare the effects of market volatilities on Everspin Technologies 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 Everspin Technologies with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everspin Technologies and SunOpta.
Diversification Opportunities for Everspin Technologies and SunOpta
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Everspin and SunOpta is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Everspin Technologies and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Everspin Technologies 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 Everspin Technologies 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 Everspin Technologies i.e., Everspin Technologies and SunOpta go up and down completely randomly.
Pair Corralation between Everspin Technologies and SunOpta
Given the investment horizon of 90 days Everspin Technologies is expected to under-perform the SunOpta. But the stock apears to be less risky and, when comparing its historical volatility, Everspin Technologies is 1.2 times less risky than SunOpta. The stock trades about -0.04 of its potential returns per unit of risk. The SunOpta is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 479.00 in SunOpta on September 2, 2024 and sell it today you would earn a total of 296.00 from holding SunOpta or generate 61.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everspin Technologies vs. SunOpta
Performance |
| Timeline |
| Everspin Technologies |
| SunOpta |
Everspin Technologies and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everspin Technologies and SunOpta
The main advantage of trading using opposite Everspin Technologies and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everspin Technologies 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.| Everspin Technologies vs. NXP Semiconductors NV | Everspin Technologies vs. GSI Technology | Everspin Technologies vs. MaxLinear | Everspin Technologies vs. Texas Instruments Incorporated |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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