Correlation Between SunOpta and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both SunOpta and Aerofoam Metals 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 Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Aerofoam Metals, you can compare the effects of market volatilities on SunOpta and Aerofoam Metals 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 Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Aerofoam Metals.
Diversification Opportunities for SunOpta and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals 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 Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of SunOpta i.e., SunOpta and Aerofoam Metals go up and down completely randomly.
Pair Corralation between SunOpta and Aerofoam Metals
If you would invest 589.00 in SunOpta on October 24, 2024 and sell it today you would earn a total of 141.00 from holding SunOpta or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.65% |
| Values | Daily Returns |
SunOpta vs. Aerofoam Metals
Performance |
| Timeline |
| SunOpta |
| Aerofoam Metals |
SunOpta and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Aerofoam Metals
The main advantage of trading using opposite SunOpta and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Aerofoam Metals vs. Olympic Steel | Aerofoam Metals vs. SunOpta | Aerofoam Metals vs. The Gap, | Aerofoam Metals vs. SBM Offshore NV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |