Correlation Between Sable Offshore and SunOpta
Can any of the company-specific risk be diversified away by investing in both Sable Offshore 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 Sable Offshore and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sable Offshore Corp and SunOpta, you can compare the effects of market volatilities on Sable Offshore 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 Sable Offshore with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sable Offshore and SunOpta.
Diversification Opportunities for Sable Offshore and SunOpta
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sable and SunOpta is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Sable Offshore 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 Sable Offshore Corp 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 Sable Offshore i.e., Sable Offshore and SunOpta go up and down completely randomly.
Pair Corralation between Sable Offshore and SunOpta
Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 0.91 times more return on investment than SunOpta. However, Sable Offshore Corp is 1.09 times less risky than SunOpta. It trades about 0.07 of its potential returns per unit of risk. SunOpta is currently generating about 0.01 per unit of risk. If you would invest 1,005 in Sable Offshore Corp on September 4, 2024 and sell it today you would earn a total of 1,140 from holding Sable Offshore Corp or generate 113.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.55% |
| Values | Daily Returns |
Sable Offshore Corp vs. SunOpta
Performance |
| Timeline |
| Sable Offshore Corp |
| SunOpta |
Sable Offshore and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sable Offshore and SunOpta
The main advantage of trading using opposite Sable Offshore and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sable Offshore 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.| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |