Correlation Between SunOpta and Converge Technology
Can any of the company-specific risk be diversified away by investing in both SunOpta and Converge Technology 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 SunOpta and Converge Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Converge Technology Solutions, you can compare the effects of market volatilities on SunOpta and Converge Technology 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 SunOpta with a short position of Converge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Converge Technology.
Diversification Opportunities for SunOpta and Converge Technology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunOpta and Converge is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Converge Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Converge Technology and SunOpta 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 SunOpta are associated (or correlated) with Converge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Converge Technology has no effect on the direction of SunOpta i.e., SunOpta and Converge Technology go up and down completely randomly.
Pair Corralation between SunOpta and Converge Technology
Assuming the 90 days trading horizon SunOpta is expected to generate 0.87 times more return on investment than Converge Technology. However, SunOpta is 1.15 times less risky than Converge Technology. It trades about 0.14 of its potential returns per unit of risk. Converge Technology Solutions is currently generating about -0.03 per unit of risk. If you would invest 725.00 in SunOpta on November 2, 2024 and sell it today you would earn a total of 359.00 from holding SunOpta or generate 49.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.05% |
| Values | Daily Returns |
SunOpta vs. Converge Technology Solutions
Performance |
| Timeline |
| SunOpta |
| Converge Technology |
SunOpta and Converge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Converge Technology
The main advantage of trading using opposite SunOpta and Converge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Converge Technology 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 Converge Technology will offset losses from the drop in Converge Technology's long position.| SunOpta vs. Winpak | SunOpta vs. Canaccord Genuity Group | SunOpta vs. Altus Group Limited | SunOpta vs. Martinrea International |
| Converge Technology vs. Dye Durham | Converge Technology vs. Docebo Inc | Converge Technology vs. Topicus | Converge Technology vs. goeasy |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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