Correlation Between NH Foods and SunOpta
Can any of the company-specific risk be diversified away by investing in both NH Foods 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 NH Foods and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and SunOpta, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and SunOpta.
Diversification Opportunities for NH Foods and SunOpta
Pay attention - limited upside
The 3 months correlation between NIPMY and SunOpta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and SunOpta go up and down completely randomly.
Pair Corralation between NH Foods and SunOpta
Assuming the 90 days horizon NH Foods Ltd is expected to generate 0.22 times more return on investment than SunOpta. However, NH Foods Ltd is 4.53 times less risky than SunOpta. It trades about 0.1 of its potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of risk. If you would invest 1,203 in NH Foods Ltd on August 28, 2024 and sell it today you would earn a total of 497.00 from holding NH Foods Ltd or generate 41.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. SunOpta
Performance |
| Timeline |
| NH Foods |
| SunOpta |
NH Foods and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and SunOpta
The main advantage of trading using opposite NH Foods and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.| NH Foods vs. Artisan Consumer Goods | NH Foods vs. The A2 Milk | NH Foods vs. BioAdaptives | NH Foods vs. General Mills |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |