Correlation Between U Haul and SunOpta
Can any of the company-specific risk be diversified away by investing in both U Haul and SunOpta 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 U Haul and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and SunOpta, you can compare the effects of market volatilities on U Haul and SunOpta 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 U Haul with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and SunOpta.
Diversification Opportunities for U Haul and SunOpta
Good diversification
The 3 months correlation between UHAL and SunOpta is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and U Haul 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 U Haul Holding are associated (or correlated) with SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of U Haul i.e., U Haul and SunOpta go up and down completely randomly.
Pair Corralation between U Haul and SunOpta
Given the investment horizon of 90 days U Haul is expected to generate 3.74 times less return on investment than SunOpta. But when comparing it to its historical volatility, U Haul Holding is 2.02 times less risky than SunOpta. It trades about 0.03 of its potential returns per unit of risk. SunOpta is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 615.00 in SunOpta on August 29, 2024 and sell it today you would earn a total of 164.00 from holding SunOpta or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. SunOpta
Performance |
| Timeline |
| U Haul Holding |
| SunOpta |
U Haul and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and SunOpta
The main advantage of trading using opposite U Haul and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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