Correlation Between VOXX International and SunOpta
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and SunOpta, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and SunOpta.
Diversification Opportunities for VOXX International and SunOpta
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VOXX and SunOpta is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and VOXX International 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 VOXX 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 VOXX International i.e., VOXX International and SunOpta go up and down completely randomly.
Pair Corralation between VOXX International and SunOpta
Given the investment horizon of 90 days VOXX International is expected to generate 1.32 times less return on investment than SunOpta. In addition to that, VOXX International is 1.07 times more volatile than SunOpta. It trades about 0.02 of its total potential returns per unit of risk. SunOpta is currently generating about 0.03 per unit of volatility. If you would invest 552.00 in SunOpta on January 26, 2024 and sell it today you would earn a total of 116.00 from holding SunOpta or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VOXX International vs. SunOpta
Performance |
| Timeline |
| VOXX International |
| SunOpta |
VOXX International and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VOXX International and SunOpta
The main advantage of trading using opposite VOXX International and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.| VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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