Correlation Between Red Trail and SunOpta
Can any of the company-specific risk be diversified away by investing in both Red Trail 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 Red Trail and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Trail Energy and SunOpta, you can compare the effects of market volatilities on Red Trail 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 Red Trail with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Trail and SunOpta.
Diversification Opportunities for Red Trail and SunOpta
Pay attention - limited upside
The 3 months correlation between Red and SunOpta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Red Trail Energy and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Red Trail 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 Red Trail Energy 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 Red Trail i.e., Red Trail and SunOpta go up and down completely randomly.
Pair Corralation between Red Trail and SunOpta
If you would invest 380.00 in Red Trail Energy on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Red Trail Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Trail Energy vs. SunOpta
Performance |
| Timeline |
| Red Trail Energy |
| SunOpta |
Red Trail and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Trail and SunOpta
The main advantage of trading using opposite Red Trail and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Trail 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.| Red Trail vs. Li Auto | Red Trail vs. Corporacion America Airports | Red Trail vs. BRP Inc | Red Trail vs. Cebu Air 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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