Correlation Between SunOpta and Bt Brands
Can any of the company-specific risk be diversified away by investing in both SunOpta and Bt Brands 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 Bt Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Bt Brands, you can compare the effects of market volatilities on SunOpta and Bt Brands 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 Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Bt Brands.
Diversification Opportunities for SunOpta and Bt Brands
Very good diversification
The 3 months correlation between SunOpta and BTBD is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt Brands 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 Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of SunOpta i.e., SunOpta and Bt Brands go up and down completely randomly.
Pair Corralation between SunOpta and Bt Brands
Given the investment horizon of 90 days SunOpta is expected to generate 0.8 times more return on investment than Bt Brands. However, SunOpta is 1.24 times less risky than Bt Brands. It trades about 0.42 of its potential returns per unit of risk. Bt Brands is currently generating about -0.03 per unit of risk. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Bt Brands
Performance |
| Timeline |
| SunOpta |
| Bt Brands |
SunOpta and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Bt Brands
The main advantage of trading using opposite SunOpta and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Bt Brands 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 Bt Brands will offset losses from the drop in Bt Brands' long position.| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
| Bt Brands vs. RLJ Lodging Trust | Bt Brands vs. Aquagold International | Bt Brands vs. Stepstone Group | Bt Brands vs. Morningstar Unconstrained Allocation |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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