Correlation Between SunOpta and Western Metals
Can any of the company-specific risk be diversified away by investing in both SunOpta and Western Metals 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 Western Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Western Metals, you can compare the effects of market volatilities on SunOpta and Western Metals 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 Western Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Western Metals.
Diversification Opportunities for SunOpta and Western Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Western Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metals 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 Western Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metals has no effect on the direction of SunOpta i.e., SunOpta and Western Metals go up and down completely randomly.
Pair Corralation between SunOpta and Western Metals
If you would invest 641.00 in SunOpta on September 12, 2024 and sell it today you would earn a total of 138.00 from holding SunOpta or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
SunOpta vs. Western Metals
Performance |
| Timeline |
| SunOpta |
| Western Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SunOpta and Western Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Western Metals
The main advantage of trading using opposite SunOpta and Western Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Western Metals 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 Western Metals will offset losses from the drop in Western Metals' long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| Western Metals vs. Oatly Group AB | Western Metals vs. Infosys Ltd ADR | Western Metals vs. Zhihu Inc ADR | Western Metals vs. FactSet Research Systems |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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