Correlation Between Where Food and SunOpta
Can any of the company-specific risk be diversified away by investing in both Where Food 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 Where Food and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Where Food Comes and SunOpta, you can compare the effects of market volatilities on Where Food 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 Where Food with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and SunOpta.
Diversification Opportunities for Where Food and SunOpta
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Where and SunOpta is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Where Food 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 Where Food Comes 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 Where Food i.e., Where Food and SunOpta go up and down completely randomly.
Pair Corralation between Where Food and SunOpta
Given the investment horizon of 90 days Where Food is expected to generate 7.09 times less return on investment than SunOpta. But when comparing it to its historical volatility, Where Food Comes is 2.24 times less risky than SunOpta. It trades about 0.12 of its potential returns per unit of risk. SunOpta is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 597.00 in SunOpta on August 30, 2024 and sell it today you would earn a total of 184.00 from holding SunOpta or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Where Food Comes vs. SunOpta
Performance |
| Timeline |
| Where Food Comes |
| SunOpta |
Where Food and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Where Food and SunOpta
The main advantage of trading using opposite Where Food and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food 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.| Where Food vs. Marin Software | Where Food vs. EzFill Holdings | Where Food vs. Trust Stamp | Where Food vs. Infobird Co |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products | SunOpta vs. Associated British Foods |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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