Correlation Between SunOpta and Condor Resources

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Can any of the company-specific risk be diversified away by investing in both SunOpta and Condor Resources 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 Condor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Condor Resources, you can compare the effects of market volatilities on SunOpta and Condor Resources 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 Condor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Condor Resources.

Diversification Opportunities for SunOpta and Condor Resources

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between SunOpta and Condor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Condor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Resources 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 Condor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Resources has no effect on the direction of SunOpta i.e., SunOpta and Condor Resources go up and down completely randomly.

Pair Corralation between SunOpta and Condor Resources

Given the investment horizon of 90 days SunOpta is expected to generate 9.81 times less return on investment than Condor Resources. But when comparing it to its historical volatility, SunOpta is 20.3 times less risky than Condor Resources. It trades about 0.15 of its potential returns per unit of risk. Condor Resources is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Condor Resources on September 15, 2024 and sell it today you would lose (2.00) from holding Condor Resources or give up 18.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SunOpta  vs.  Condor Resources

 Performance 
       Timeline  
SunOpta 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, SunOpta disclosed solid returns over the last few months and may actually be approaching a breakup point.
Condor Resources 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Condor Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SunOpta and Condor Resources Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SunOpta and Condor Resources

The main advantage of trading using opposite SunOpta and Condor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Condor Resources 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 Condor Resources will offset losses from the drop in Condor Resources' long position.
The idea behind SunOpta and Condor Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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