Correlation Between 09062XAK9 and SunOpta

Can any of the company-specific risk be diversified away by investing in both 09062XAK9 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 09062XAK9 and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BIIB 325 15 FEB 51 and SunOpta, you can compare the effects of market volatilities on 09062XAK9 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 09062XAK9 with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of 09062XAK9 and SunOpta.

Diversification Opportunities for 09062XAK9 and SunOpta

-0.68

Correlation Coefficient

09062XAK9  SunOpta

Excellent diversification

The 3 months correlation between 09062XAK9 and SunOpta is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BIIB 325 15 FEB 51 and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and 09062XAK9 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 BIIB 325 15 FEB 51 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 09062XAK9 i.e., 09062XAK9 and SunOpta go up and down completely randomly.

Pair Corralation between 09062XAK9 and SunOpta

Assuming the 90 days trading horizon BIIB 325 15 FEB 51 is expected to under-perform the SunOpta. In addition to that, 09062XAK9 is 1.63 times more volatile than SunOpta. It trades about -0.12 of its total potential returns per unit of risk. SunOpta is currently generating about 0.13 per unit of volatility. If you would invest  753.00  in SunOpta on September 14, 2024 and sell it today you would earn a total of  28.00  from holding SunOpta or generate 3.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	80.95%
Values	Daily Returns

BIIB 325 15 FEB 51  vs.  SunOpta

BIIB 325 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BIIB 325 15 FEB 51 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for BIIB 325 15 FEB 51 investors.

SunOpta

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 7 (%) 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.

Pair Trading with 09062XAK9 and SunOpta

The main advantage of trading using opposite 09062XAK9 and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 09062XAK9 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.

The idea behind BIIB 325 15 FEB 51 and SunOpta 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.