Correlation Between SunOpta and Bukit Asam
Can any of the company-specific risk be diversified away by investing in both SunOpta and Bukit Asam 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 Bukit Asam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Bukit Asam Tbk, you can compare the effects of market volatilities on SunOpta and Bukit Asam 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 Bukit Asam. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Bukit Asam.
Diversification Opportunities for SunOpta and Bukit Asam
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SunOpta and Bukit is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Bukit Asam Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Asam Tbk 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 Bukit Asam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Asam Tbk has no effect on the direction of SunOpta i.e., SunOpta and Bukit Asam go up and down completely randomly.
Pair Corralation between SunOpta and Bukit Asam
Given the investment horizon of 90 days SunOpta is expected to generate 1.26 times more return on investment than Bukit Asam. However, SunOpta is 1.26 times more volatile than Bukit Asam Tbk. It trades about -0.08 of its potential returns per unit of risk. Bukit Asam Tbk is currently generating about -0.22 per unit of risk. If you would invest 747.00 in SunOpta on November 28, 2024 and sell it today you would lose (23.00) from holding SunOpta or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Bukit Asam Tbk
Performance |
| Timeline |
| SunOpta |
| Bukit Asam Tbk |
SunOpta and Bukit Asam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Bukit Asam
The main advantage of trading using opposite SunOpta and Bukit Asam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Bukit Asam 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 Bukit Asam will offset losses from the drop in Bukit Asam's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Bukit Asam vs. Astral Foods Limited | Bukit Asam vs. Aegon NV ADR | Bukit Asam vs. Apartment Investment and | Bukit Asam vs. WK Kellogg Co |
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..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |