Correlation Between SunOpta and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both SunOpta and Edgewell Personal 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 Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Edgewell Personal Care, you can compare the effects of market volatilities on SunOpta and Edgewell Personal 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 Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Edgewell Personal.
Diversification Opportunities for SunOpta and Edgewell Personal
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunOpta and Edgewell is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care 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 Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of SunOpta i.e., SunOpta and Edgewell Personal go up and down completely randomly.
Pair Corralation between SunOpta and Edgewell Personal
Given the investment horizon of 90 days SunOpta is expected to generate 2.18 times more return on investment than Edgewell Personal. However, SunOpta is 2.18 times more volatile than Edgewell Personal Care. It trades about 0.07 of its potential returns per unit of risk. Edgewell Personal Care is currently generating about 0.03 per unit of risk. If you would invest 486.00 in SunOpta on September 3, 2024 and sell it today you would earn a total of 284.00 from holding SunOpta or generate 58.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Edgewell Personal Care
Performance |
| Timeline |
| SunOpta |
| Edgewell Personal Care |
SunOpta and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Edgewell Personal
The main advantage of trading using opposite SunOpta and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Edgewell Personal vs. Highway Holdings Limited | Edgewell Personal vs. QCR Holdings | Edgewell Personal vs. Partner Communications | Edgewell Personal vs. Acumen Pharmaceuticals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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