Correlation Between SunOpta and NEWELL
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By analyzing existing cross correlation between SunOpta and NEWELL BRANDS INC, you can compare the effects of market volatilities on SunOpta and NEWELL 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 NEWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and NEWELL.
Diversification Opportunities for SunOpta and NEWELL
Modest diversification
The 3 months correlation between SunOpta and NEWELL is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and NEWELL BRANDS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL BRANDS 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 NEWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL BRANDS INC has no effect on the direction of SunOpta i.e., SunOpta and NEWELL go up and down completely randomly.
Pair Corralation between SunOpta and NEWELL
Given the investment horizon of 90 days SunOpta is expected to generate 2.11 times more return on investment than NEWELL. However, SunOpta is 2.11 times more volatile than NEWELL BRANDS INC. It trades about 0.08 of its potential returns per unit of risk. NEWELL BRANDS INC is currently generating about -0.01 per unit of risk. If you would invest 475.00 in SunOpta on September 4, 2024 and sell it today you would earn a total of 297.00 from holding SunOpta or generate 62.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
SunOpta vs. NEWELL BRANDS INC
Performance |
| Timeline |
| SunOpta |
| NEWELL BRANDS INC |
SunOpta and NEWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and NEWELL
The main advantage of trading using opposite SunOpta and NEWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, NEWELL 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 NEWELL will offset losses from the drop in NEWELL's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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