Correlation Between SunOpta and Data Communications
Can any of the company-specific risk be diversified away by investing in both SunOpta and Data Communications 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 Data Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Data Communications Management, you can compare the effects of market volatilities on SunOpta and Data Communications 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 Data Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Data Communications.
Diversification Opportunities for SunOpta and Data Communications
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and Data is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Data Communications Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Communications 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 Data Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Communications has no effect on the direction of SunOpta i.e., SunOpta and Data Communications go up and down completely randomly.
Pair Corralation between SunOpta and Data Communications
Assuming the 90 days trading horizon SunOpta is expected to generate 3.39 times less return on investment than Data Communications. In addition to that, SunOpta is 1.02 times more volatile than Data Communications Management. It trades about 0.01 of its total potential returns per unit of risk. Data Communications Management is currently generating about 0.05 per unit of volatility. If you would invest 131.00 in Data Communications Management on October 13, 2024 and sell it today you would earn a total of 87.00 from holding Data Communications Management or generate 66.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Data Communications Management
Performance |
| Timeline |
| SunOpta |
| Data Communications |
SunOpta and Data Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Data Communications
The main advantage of trading using opposite SunOpta and Data Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Data Communications 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 Data Communications will offset losses from the drop in Data Communications' long position.| SunOpta vs. Winpak | SunOpta vs. Canaccord Genuity Group | SunOpta vs. Altus Group Limited | SunOpta vs. Martinrea International |
| Data Communications vs. Baylin Technologies | Data Communications vs. Kits Eyecare | Data Communications vs. Greenlane Renewables | Data Communications vs. Supremex |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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