Correlation Between SunOpta and National Vision
Can any of the company-specific risk be diversified away by investing in both SunOpta and National Vision 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 National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and National Vision Holdings, you can compare the effects of market volatilities on SunOpta and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and National Vision.
Diversification Opportunities for SunOpta and National Vision
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SunOpta and National is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of SunOpta i.e., SunOpta and National Vision go up and down completely randomly.
Pair Corralation between SunOpta and National Vision
Given the investment horizon of 90 days SunOpta is expected to generate 0.96 times more return on investment than National Vision. However, SunOpta is 1.04 times less risky than National Vision. It trades about 0.01 of its potential returns per unit of risk. National Vision Holdings is currently generating about -0.05 per unit of risk. If you would invest 899.00 in SunOpta on August 28, 2024 and sell it today you would lose (127.00) from holding SunOpta or give up 14.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. National Vision Holdings
Performance |
| Timeline |
| SunOpta |
| National Vision Holdings |
SunOpta and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and National Vision
The main advantage of trading using opposite SunOpta and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |