Correlation Between SunOpta and MASTERCARD
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By analyzing existing cross correlation between SunOpta and MASTERCARD INC, you can compare the effects of market volatilities on SunOpta and MASTERCARD 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 MASTERCARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and MASTERCARD.
Diversification Opportunities for SunOpta and MASTERCARD
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunOpta and MASTERCARD is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and MASTERCARD INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASTERCARD INC 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 MASTERCARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASTERCARD INC has no effect on the direction of SunOpta i.e., SunOpta and MASTERCARD go up and down completely randomly.
Pair Corralation between SunOpta and MASTERCARD
Given the investment horizon of 90 days SunOpta is expected to generate 3.62 times more return on investment than MASTERCARD. However, SunOpta is 3.62 times more volatile than MASTERCARD INC. It trades about 0.42 of its potential returns per unit of risk. MASTERCARD INC is currently generating about -0.18 per unit of risk. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SunOpta vs. MASTERCARD INC
Performance |
| Timeline |
| SunOpta |
| MASTERCARD INC |
SunOpta and MASTERCARD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and MASTERCARD
The main advantage of trading using opposite SunOpta and MASTERCARD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, MASTERCARD 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 MASTERCARD will offset losses from the drop in MASTERCARD's long position.| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
| MASTERCARD vs. AEP TEX INC | MASTERCARD vs. US BANK NATIONAL | MASTERCARD vs. American Express | MASTERCARD vs. Chevron Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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