Correlation Between SunOpta and Miniso Group

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

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

Diversification Opportunities for SunOpta and Miniso Group

-0.53

Correlation Coefficient

SunOpta  Miniso Group

Excellent diversification

The 3 months correlation between SunOpta and Miniso is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Miniso Group HoldingLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group HoldingLtd 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 Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group HoldingLtd has no effect on the direction of SunOpta i.e., SunOpta and Miniso Group go up and down completely randomly.

Pair Corralation between SunOpta and Miniso Group

If you would invest  2,258  in Miniso Group HoldingLtd on February 24, 2024 and sell it today you would lose (23.00) from holding Miniso Group HoldingLtd or give up 1.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SunOpta  vs.  Miniso Group HoldingLtd

SunOpta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SunOpta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Miniso Group HoldingLtd

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Miniso Group HoldingLtd are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Miniso Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SunOpta and Miniso Group

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

The idea behind SunOpta and Miniso Group HoldingLtd 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.