Correlation Between SunOpta and Everspin Technologies
Can any of the company-specific risk be diversified away by investing in both SunOpta and Everspin Technologies 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 Everspin Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Everspin Technologies, you can compare the effects of market volatilities on SunOpta and Everspin Technologies 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 Everspin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Everspin Technologies.
Diversification Opportunities for SunOpta and Everspin Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SunOpta and Everspin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Everspin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everspin Technologies 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 Everspin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everspin Technologies has no effect on the direction of SunOpta i.e., SunOpta and Everspin Technologies go up and down completely randomly.
Pair Corralation between SunOpta and Everspin Technologies
Given the investment horizon of 90 days SunOpta is expected to generate 1.2 times more return on investment than Everspin Technologies. However, SunOpta is 1.2 times more volatile than Everspin Technologies. It trades about 0.08 of its potential returns per unit of risk. Everspin Technologies is currently generating about -0.04 per unit of risk. If you would invest 479.00 in SunOpta on September 2, 2024 and sell it today you would earn a total of 296.00 from holding SunOpta or generate 61.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Everspin Technologies
Performance |
| Timeline |
| SunOpta |
| Everspin Technologies |
SunOpta and Everspin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Everspin Technologies
The main advantage of trading using opposite SunOpta and Everspin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Everspin Technologies 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 Everspin Technologies will offset losses from the drop in Everspin Technologies' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Everspin Technologies vs. NXP Semiconductors NV | Everspin Technologies vs. GSI Technology | Everspin Technologies vs. MaxLinear | Everspin Technologies vs. Texas Instruments Incorporated |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |