Correlation Between Newell Brands and SunOpta
Can any of the company-specific risk be diversified away by investing in both Newell Brands 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 Newell Brands and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newell Brands and SunOpta, you can compare the effects of market volatilities on Newell Brands 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 Newell Brands with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newell Brands and SunOpta.
Diversification Opportunities for Newell Brands and SunOpta
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newell and SunOpta is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Newell Brands and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Newell Brands 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 Newell Brands 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 Newell Brands i.e., Newell Brands and SunOpta go up and down completely randomly.
Pair Corralation between Newell Brands and SunOpta
Considering the 90-day investment horizon Newell Brands is expected to generate 6.37 times less return on investment than SunOpta. In addition to that, Newell Brands is 1.07 times more volatile than SunOpta. It trades about 0.0 of its total potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of volatility. If you would invest 848.00 in SunOpta on September 3, 2024 and sell it today you would lose (78.00) from holding SunOpta or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newell Brands vs. SunOpta
Performance |
| Timeline |
| Newell Brands |
| SunOpta |
Newell Brands and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newell Brands and SunOpta
The main advantage of trading using opposite Newell Brands and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newell Brands 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.| Newell Brands vs. The Clorox | Newell Brands vs. Colgate Palmolive | Newell Brands vs. Procter Gamble | Newell Brands vs. Unilever PLC ADR |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |