Correlation Between SunOpta and Getty Images
Can any of the company-specific risk be diversified away by investing in both SunOpta and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Getty Images Holdings, you can compare the effects of market volatilities on SunOpta and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Getty Images.
Diversification Opportunities for SunOpta and Getty Images
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SunOpta and Getty is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of SunOpta i.e., SunOpta and Getty Images go up and down completely randomly.
Pair Corralation between SunOpta and Getty Images
Given the investment horizon of 90 days SunOpta is expected to generate 1.09 times more return on investment than Getty Images. However, SunOpta is 1.09 times more volatile than Getty Images Holdings. It trades about 0.13 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.09 per unit of risk. If you would invest 599.00 in SunOpta on August 29, 2024 and sell it today you would earn a total of 182.00 from holding SunOpta or generate 30.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Getty Images Holdings
Performance |
| Timeline |
| SunOpta |
| Getty Images Holdings |
SunOpta and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Getty Images
The main advantage of trading using opposite SunOpta and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products | SunOpta vs. Associated British Foods |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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