Correlation Between SunOpta and MFA Financial
Can any of the company-specific risk be diversified away by investing in both SunOpta and MFA Financial 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 MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and MFA Financial SR, you can compare the effects of market volatilities on SunOpta and MFA Financial 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 MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and MFA Financial.
Diversification Opportunities for SunOpta and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR 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 MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of SunOpta i.e., SunOpta and MFA Financial go up and down completely randomly.
Pair Corralation between SunOpta and MFA Financial
If you would invest 826.00 in SunOpta on October 13, 2024 and sell it today you would lose (99.00) from holding SunOpta or give up 11.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
SunOpta vs. MFA Financial SR
Performance |
| Timeline |
| SunOpta |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SunOpta and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and MFA Financial
The main advantage of trading using opposite SunOpta and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, MFA Financial 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| MFA Financial vs. SunOpta | MFA Financial vs. Visteon Corp | MFA Financial vs. Adient PLC | MFA Financial vs. National Vision Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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