Correlation Between SunOpta and CVW CleanTech
Can any of the company-specific risk be diversified away by investing in both SunOpta and CVW CleanTech 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 CVW CleanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and CVW CleanTech, you can compare the effects of market volatilities on SunOpta and CVW CleanTech 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 CVW CleanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and CVW CleanTech.
Diversification Opportunities for SunOpta and CVW CleanTech
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between SunOpta and CVW is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and CVW CleanTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CleanTech 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 CVW CleanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CleanTech has no effect on the direction of SunOpta i.e., SunOpta and CVW CleanTech go up and down completely randomly.
Pair Corralation between SunOpta and CVW CleanTech
Given the investment horizon of 90 days SunOpta is expected to generate 1.54 times more return on investment than CVW CleanTech. However, SunOpta is 1.54 times more volatile than CVW CleanTech. It trades about 0.26 of its potential returns per unit of risk. CVW CleanTech is currently generating about -0.01 per unit of risk. If you would invest 590.00 in SunOpta on September 19, 2024 and sell it today you would earn a total of 186.50 from holding SunOpta or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
SunOpta vs. CVW CleanTech
Performance |
| Timeline |
| SunOpta |
| CVW CleanTech |
SunOpta and CVW CleanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and CVW CleanTech
The main advantage of trading using opposite SunOpta and CVW CleanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, CVW CleanTech 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 CVW CleanTech will offset losses from the drop in CVW CleanTech's long position.| SunOpta vs. Hill Street Beverage | SunOpta vs. Vita Coco | SunOpta vs. Coca Cola Femsa SAB | SunOpta vs. Coca Cola European Partners |
| CVW CleanTech vs. Legacy Education | CVW CleanTech vs. Apple Inc | CVW CleanTech vs. NVIDIA | CVW CleanTech vs. Microsoft |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |