Correlation Between SunOpta and Fund
Can any of the company-specific risk be diversified away by investing in both SunOpta and Fund 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 Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Fund Inc, you can compare the effects of market volatilities on SunOpta and Fund 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 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Fund.
Diversification Opportunities for SunOpta and Fund
Weak diversification
The 3 months correlation between SunOpta and Fund is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fund Inc 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 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fund Inc has no effect on the direction of SunOpta i.e., SunOpta and Fund go up and down completely randomly.
Pair Corralation between SunOpta and Fund
Given the investment horizon of 90 days SunOpta is expected to generate 5.88 times less return on investment than Fund. But when comparing it to its historical volatility, SunOpta is 1.65 times less risky than Fund. It trades about 0.01 of its potential returns per unit of risk. Fund Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Fund Inc on September 5, 2024 and sell it today you would earn a total of 114.00 from holding Fund Inc or generate 103.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SunOpta vs. Fund Inc
Performance |
| Timeline |
| SunOpta |
| Fund Inc |
SunOpta and Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Fund
The main advantage of trading using opposite SunOpta and Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Fund 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 Fund will offset losses from the drop in Fund's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |