Correlation Between AMERICAN and SunOpta
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By analyzing existing cross correlation between AMERICAN EXPRESS 42 and SunOpta, you can compare the effects of market volatilities on AMERICAN 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 AMERICAN with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERICAN and SunOpta.
Diversification Opportunities for AMERICAN and SunOpta
Excellent diversification
The 3 months correlation between AMERICAN and SunOpta is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN EXPRESS 42 and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and AMERICAN 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 AMERICAN EXPRESS 42 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 AMERICAN i.e., AMERICAN and SunOpta go up and down completely randomly.
Pair Corralation between AMERICAN and SunOpta
Assuming the 90 days trading horizon AMERICAN EXPRESS 42 is expected to under-perform the SunOpta. But the bond apears to be less risky and, when comparing its historical volatility, AMERICAN EXPRESS 42 is 12.39 times less risky than SunOpta. The bond trades about -0.01 of its potential returns per unit of risk. The SunOpta is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 571.00 in SunOpta on September 5, 2024 and sell it today you would earn a total of 201.00 from holding SunOpta or generate 35.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
AMERICAN EXPRESS 42 vs. SunOpta
Performance |
| Timeline |
| AMERICAN EXPRESS |
| SunOpta |
AMERICAN and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERICAN and SunOpta
The main advantage of trading using opposite AMERICAN and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERICAN 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.| AMERICAN vs. SunOpta | AMERICAN vs. Kite Realty Group | AMERICAN vs. Noble plc | AMERICAN vs. Precision Drilling |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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