Correlation Between SunOpta and Park Hotels
Can any of the company-specific risk be diversified away by investing in both SunOpta and Park Hotels 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 Park Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Park Hotels Resorts, you can compare the effects of market volatilities on SunOpta and Park Hotels 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 Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Park Hotels.
Diversification Opportunities for SunOpta and Park Hotels
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunOpta and Park is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts 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 Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of SunOpta i.e., SunOpta and Park Hotels go up and down completely randomly.
Pair Corralation between SunOpta and Park Hotels
Given the investment horizon of 90 days SunOpta is expected to generate 1.17 times more return on investment than Park Hotels. However, SunOpta is 1.17 times more volatile than Park Hotels Resorts. It trades about 0.3 of its potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.22 per unit of risk. If you would invest 675.00 in SunOpta on September 3, 2024 and sell it today you would earn a total of 95.00 from holding SunOpta or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Park Hotels Resorts
Performance |
| Timeline |
| SunOpta |
| Park Hotels Resorts |
SunOpta and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Park Hotels
The main advantage of trading using opposite SunOpta and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Park Hotels 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Park Hotels vs. Diamondrock Hospitality | Park Hotels vs. Ryman Hospitality Properties | Park Hotels vs. Pebblebrook Hotel Trust | Park Hotels vs. RLJ Lodging Trust |
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.
Other Complementary Tools
| 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 | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |