Correlation Between Green Globe and SunOpta
Can any of the company-specific risk be diversified away by investing in both Green Globe 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 Green Globe and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Globe International and SunOpta, you can compare the effects of market volatilities on Green Globe 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 Green Globe with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Globe and SunOpta.
Diversification Opportunities for Green Globe and SunOpta
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Green and SunOpta is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Green Globe International and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Green Globe 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 Green Globe International 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 Green Globe i.e., Green Globe and SunOpta go up and down completely randomly.
Pair Corralation between Green Globe and SunOpta
Given the investment horizon of 90 days Green Globe International is expected to generate 3.83 times more return on investment than SunOpta. However, Green Globe is 3.83 times more volatile than SunOpta. It trades about 0.04 of its potential returns per unit of risk. SunOpta is currently generating about -0.04 per unit of risk. If you would invest 0.07 in Green Globe International on February 17, 2024 and sell it today you would lose 0.00 from holding Green Globe International or give up 7.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Green Globe International vs. SunOpta
Performance |
Timeline |
Green Globe International |
SunOpta |
Green Globe and SunOpta Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green Globe and SunOpta
The main advantage of trading using opposite Green Globe and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Globe 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.Green Globe vs. Imperial Brands PLC | Green Globe vs. RLX Technology | Green Globe vs. British American Tobacco | Green Globe vs. Turning Point Brands |
SunOpta vs. Seneca Foods Corp | SunOpta vs. Natures Sunshine Products | SunOpta vs. Associated British Foods | SunOpta vs. Nomad 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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