Correlation Between SunOpta and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both SunOpta and Aegon Funding 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 Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Aegon Funding, you can compare the effects of market volatilities on SunOpta and Aegon Funding 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 Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Aegon Funding.
Diversification Opportunities for SunOpta and Aegon Funding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SunOpta and Aegon is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding 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 Aegon Funding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon Funding has no effect on the direction of SunOpta i.e., SunOpta and Aegon Funding go up and down completely randomly.
Pair Corralation between SunOpta and Aegon Funding
Given the investment horizon of 90 days SunOpta is expected to generate 1.45 times more return on investment than Aegon Funding. However, SunOpta is 1.45 times more volatile than Aegon Funding. It trades about 0.17 of its potential returns per unit of risk. Aegon Funding is currently generating about -0.06 per unit of risk. If you would invest 751.00 in SunOpta on September 12, 2024 and sell it today you would earn a total of 38.00 from holding SunOpta or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Aegon Funding
Performance |
| Timeline |
| SunOpta |
| Aegon Funding |
SunOpta and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Aegon Funding
The main advantage of trading using opposite SunOpta and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Aegon Funding 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 Aegon Funding will offset losses from the drop in Aegon Funding's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Aegon Funding vs. SNDL Inc | Aegon Funding vs. SunOpta | Aegon Funding vs. Bridgford Foods | Aegon Funding vs. Hf Foods Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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