Correlation Between Rivian Automotive and SunOpta
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive 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 Rivian Automotive and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and SunOpta, you can compare the effects of market volatilities on Rivian Automotive 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 Rivian Automotive with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and SunOpta.
Diversification Opportunities for Rivian Automotive and SunOpta
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rivian and SunOpta is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive i.e., Rivian Automotive and SunOpta go up and down completely randomly.
Pair Corralation between Rivian Automotive and SunOpta
Given the investment horizon of 90 days Rivian Automotive is expected to generate 2.59 times less return on investment than SunOpta. In addition to that, Rivian Automotive is 1.82 times more volatile than SunOpta. It trades about 0.08 of its total potential returns per unit of risk. SunOpta is currently generating about 0.38 per unit of volatility. If you would invest 598.00 in SunOpta on August 28, 2024 and sell it today you would earn a total of 174.00 from holding SunOpta or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rivian Automotive vs. SunOpta
Performance |
| Timeline |
| Rivian Automotive |
| SunOpta |
Rivian Automotive and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and SunOpta
The main advantage of trading using opposite Rivian Automotive and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive 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.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Lucid Group | Rivian Automotive vs. Tesla Inc | Rivian Automotive vs. Mullen Automotive |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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