Correlation Between Oasis Hotel and SunOpta
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel 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 Oasis Hotel and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and SunOpta, you can compare the effects of market volatilities on Oasis Hotel 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 Oasis Hotel with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and SunOpta.
Diversification Opportunities for Oasis Hotel and SunOpta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and SunOpta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Oasis Hotel 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and SunOpta go up and down completely randomly.
Pair Corralation between Oasis Hotel and SunOpta
Given the investment horizon of 90 days Oasis Hotel Resort is expected to under-perform the SunOpta. In addition to that, Oasis Hotel is 1.07 times more volatile than SunOpta. It trades about -0.04 of its total potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of volatility. If you would invest 877.00 in SunOpta on August 30, 2024 and sell it today you would lose (96.00) from holding SunOpta or give up 10.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oasis Hotel Resort vs. SunOpta
Performance |
| Timeline |
| Oasis Hotel Resort |
| SunOpta |
Oasis Hotel and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and SunOpta
The main advantage of trading using opposite Oasis Hotel and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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.| Oasis Hotel vs. Apple Inc | Oasis Hotel vs. Microsoft | Oasis Hotel vs. Alphabet Inc Class C | Oasis Hotel vs. Meta Platforms |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products | SunOpta vs. Associated British Foods |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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