Correlation Between SunOpta and Capital Clean
Can any of the company-specific risk be diversified away by investing in both SunOpta and Capital Clean 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 Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Capital Clean Energy, you can compare the effects of market volatilities on SunOpta and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Capital Clean.
Diversification Opportunities for SunOpta and Capital Clean
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SunOpta and Capital is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of SunOpta i.e., SunOpta and Capital Clean go up and down completely randomly.
Pair Corralation between SunOpta and Capital Clean
Given the investment horizon of 90 days SunOpta is expected to generate 1.86 times less return on investment than Capital Clean. In addition to that, SunOpta is 1.8 times more volatile than Capital Clean Energy. It trades about 0.01 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.05 per unit of volatility. If you would invest 1,324 in Capital Clean Energy on September 5, 2024 and sell it today you would earn a total of 519.00 from holding Capital Clean Energy or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Capital Clean Energy
Performance |
| Timeline |
| SunOpta |
| Capital Clean Energy |
SunOpta and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Capital Clean
The main advantage of trading using opposite SunOpta and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Capital Clean vs. Natural Alternatives International | Capital Clean vs. Where Food Comes | Capital Clean vs. SunOpta | Capital Clean vs. Asbury Automotive 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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