Correlation Between SunOpta and Warner Music
Can any of the company-specific risk be diversified away by investing in both SunOpta and Warner Music 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 Warner Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Warner Music Group, you can compare the effects of market volatilities on SunOpta and Warner Music 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 Warner Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Warner Music.
Diversification Opportunities for SunOpta and Warner Music
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunOpta and Warner is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Warner Music Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warner Music Group 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 Warner Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warner Music Group has no effect on the direction of SunOpta i.e., SunOpta and Warner Music go up and down completely randomly.
Pair Corralation between SunOpta and Warner Music
Given the investment horizon of 90 days SunOpta is expected to generate 0.71 times more return on investment than Warner Music. However, SunOpta is 1.41 times less risky than Warner Music. It trades about 0.08 of its potential returns per unit of risk. Warner Music Group is currently generating about 0.0 per unit of risk. If you would invest 761.00 in SunOpta on September 13, 2024 and sell it today you would earn a total of 18.00 from holding SunOpta or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Warner Music Group
Performance |
| Timeline |
| SunOpta |
| Warner Music Group |
SunOpta and Warner Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Warner Music
The main advantage of trading using opposite SunOpta and Warner Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Warner Music 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 Warner Music will offset losses from the drop in Warner Music's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Warner Music vs. News Corp A | Warner Music vs. Marcus | Warner Music vs. Liberty Media | Warner Music vs. Fox Corp Class |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |