Correlation Between SunOpta and John B
Can any of the company-specific risk be diversified away by investing in both SunOpta and John B 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 John B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and John B Sanfilippo, you can compare the effects of market volatilities on SunOpta and John B 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 John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and John B.
Diversification Opportunities for SunOpta and John B
Very good diversification
The 3 months correlation between SunOpta and John is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo 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 John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of SunOpta i.e., SunOpta and John B go up and down completely randomly.
Pair Corralation between SunOpta and John B
Given the investment horizon of 90 days SunOpta is expected to generate 0.58 times more return on investment than John B. However, SunOpta is 1.73 times less risky than John B. It trades about -0.14 of its potential returns per unit of risk. John B Sanfilippo is currently generating about -0.28 per unit of risk. If you would invest 774.00 in SunOpta on November 3, 2024 and sell it today you would lose (41.00) from holding SunOpta or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. John B Sanfilippo
Performance |
| Timeline |
| SunOpta |
| John B Sanfilippo |
SunOpta and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and John B
The main advantage of trading using opposite SunOpta and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, John B 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 John B will offset losses from the drop in John B's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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