Correlation Between SunOpta and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both SunOpta and Duluth Holdings 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 Duluth Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Duluth Holdings, you can compare the effects of market volatilities on SunOpta and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Duluth Holdings.
Diversification Opportunities for SunOpta and Duluth Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunOpta and Duluth is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of SunOpta i.e., SunOpta and Duluth Holdings go up and down completely randomly.
Pair Corralation between SunOpta and Duluth Holdings
Given the investment horizon of 90 days SunOpta is expected to generate 0.74 times more return on investment than Duluth Holdings. However, SunOpta is 1.36 times less risky than Duluth Holdings. It trades about 0.32 of its potential returns per unit of risk. Duluth Holdings is currently generating about 0.04 per unit of risk. If you would invest 675.00 in SunOpta on September 3, 2024 and sell it today you would earn a total of 100.00 from holding SunOpta or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Duluth Holdings
Performance |
| Timeline |
| SunOpta |
| Duluth Holdings |
SunOpta and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Duluth Holdings
The main advantage of trading using opposite SunOpta and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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