Correlation Between SunOpta and Intelligent Bio

Can any of the company-specific risk be diversified away by investing in both SunOpta and Intelligent Bio 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 Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SunOpta and Intelligent Bio Solutions, you can compare the effects of market volatilities on SunOpta and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Intelligent Bio.

Diversification Opportunities for SunOpta and Intelligent Bio

0.05

Correlation Coefficient

SunOpta  Intelligent Bio

Significant diversification

The 3 months correlation between SunOpta and Intelligent is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of SunOpta i.e., SunOpta and Intelligent Bio go up and down completely randomly.

Pair Corralation between SunOpta and Intelligent Bio

Given the investment horizon of 90 days SunOpta is expected to generate 0.42 times more return on investment than Intelligent Bio. However, SunOpta is 2.38 times less risky than Intelligent Bio. It trades about 0.1 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.07 per unit of risk. If you would invest  673.00  in SunOpta on September 16, 2024 and sell it today you would earn a total of  114.00  from holding SunOpta or generate 16.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SunOpta  vs.  Intelligent Bio Solutions

SunOpta

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, SunOpta disclosed solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Bio Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Bio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SunOpta and Intelligent Bio

The main advantage of trading using opposite SunOpta and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.

The idea behind SunOpta and Intelligent Bio Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.