Correlation Between SunOpta and Mosaic
Can any of the company-specific risk be diversified away by investing in both SunOpta and Mosaic 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 Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and The Mosaic, you can compare the effects of market volatilities on SunOpta and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Mosaic.
Diversification Opportunities for SunOpta and Mosaic
Good diversification
The 3 months correlation between SunOpta and Mosaic is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of SunOpta i.e., SunOpta and Mosaic go up and down completely randomly.
Pair Corralation between SunOpta and Mosaic
Given the investment horizon of 90 days SunOpta is expected to generate 1.68 times more return on investment than Mosaic. However, SunOpta is 1.68 times more volatile than The Mosaic. It trades about 0.11 of its potential returns per unit of risk. The Mosaic is currently generating about -0.04 per unit of risk. If you would invest 610.00 in SunOpta on August 23, 2024 and sell it today you would earn a total of 160.00 from holding SunOpta or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. The Mosaic
Performance |
| Timeline |
| SunOpta |
| Mosaic |
SunOpta and Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Mosaic
The main advantage of trading using opposite SunOpta and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Natures Sunshine Products | SunOpta vs. J J Snack | SunOpta vs. John B Sanfilippo |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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