Correlation Between High Liner and SunOpta
Can any of the company-specific risk be diversified away by investing in both High Liner 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 High Liner and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and SunOpta, you can compare the effects of market volatilities on High Liner 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 High Liner with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and SunOpta.
Diversification Opportunities for High Liner and SunOpta
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between High and SunOpta is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and High Liner 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 High Liner Foods 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 High Liner i.e., High Liner and SunOpta go up and down completely randomly.
Pair Corralation between High Liner and SunOpta
Assuming the 90 days trading horizon High Liner Foods is expected to generate 0.51 times more return on investment than SunOpta. However, High Liner Foods is 1.95 times less risky than SunOpta. It trades about -0.08 of its potential returns per unit of risk. SunOpta is currently generating about -0.18 per unit of risk. If you would invest 1,565 in High Liner Foods on September 11, 2025 and sell it today you would lose (181.00) from holding High Liner Foods or give up 11.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. SunOpta
Performance |
| Timeline |
| High Liner Foods |
| SunOpta |
High Liner and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and SunOpta
The main advantage of trading using opposite High Liner and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner 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.| High Liner vs. Dundee | High Liner vs. Corby Spirit and | High Liner vs. Burcon NutraScience | High Liner vs. Else Nutrition Holdings |
| SunOpta vs. D2L Inc | SunOpta vs. Rogers Sugar | SunOpta vs. High Liner Foods | SunOpta vs. Jamieson Wellness |
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 Stocks Directory module to find actively traded stocks across global markets.
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