Correlation Between SunOpta and Sphere Entertainment
Can any of the company-specific risk be diversified away by investing in both SunOpta and Sphere Entertainment 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 Sphere Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Sphere Entertainment Co, you can compare the effects of market volatilities on SunOpta and Sphere Entertainment 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 Sphere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Sphere Entertainment.
Diversification Opportunities for SunOpta and Sphere Entertainment
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SunOpta and Sphere is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Sphere Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere Entertainment 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 Sphere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere Entertainment has no effect on the direction of SunOpta i.e., SunOpta and Sphere Entertainment go up and down completely randomly.
Pair Corralation between SunOpta and Sphere Entertainment
Given the investment horizon of 90 days SunOpta is expected to generate 4.82 times less return on investment than Sphere Entertainment. In addition to that, SunOpta is 1.02 times more volatile than Sphere Entertainment Co. It trades about 0.01 of its total potential returns per unit of risk. Sphere Entertainment Co is currently generating about 0.06 per unit of volatility. If you would invest 2,022 in Sphere Entertainment Co on September 23, 2024 and sell it today you would earn a total of 1,848 from holding Sphere Entertainment Co or generate 91.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SunOpta vs. Sphere Entertainment Co
Performance |
Timeline |
SunOpta |
Sphere Entertainment |
SunOpta and Sphere Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SunOpta and Sphere Entertainment
The main advantage of trading using opposite SunOpta and Sphere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Sphere Entertainment 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 Sphere Entertainment will offset losses from the drop in Sphere Entertainment's long position.SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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