Correlation Between SunOpta and Brunswick
Can any of the company-specific risk be diversified away by investing in both SunOpta and Brunswick 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 Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Brunswick, you can compare the effects of market volatilities on SunOpta and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Brunswick.
Diversification Opportunities for SunOpta and Brunswick
Weak diversification
The 3 months correlation between SunOpta and Brunswick is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of SunOpta i.e., SunOpta and Brunswick go up and down completely randomly.
Pair Corralation between SunOpta and Brunswick
Given the investment horizon of 90 days SunOpta is expected to generate 0.93 times more return on investment than Brunswick. However, SunOpta is 1.07 times less risky than Brunswick. It trades about 0.36 of its potential returns per unit of risk. Brunswick is currently generating about 0.04 per unit of risk. If you would invest 655.00 in SunOpta on September 1, 2024 and sell it today you would earn a total of 120.00 from holding SunOpta or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Brunswick
Performance |
| Timeline |
| SunOpta |
| Brunswick |
SunOpta and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Brunswick
The main advantage of trading using opposite SunOpta and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Brunswick vs. LCI Industries | Brunswick vs. MCBC Holdings | Brunswick vs. Winnebago Industries | Brunswick vs. Thor Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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