Correlation Between Joint Stock and SunOpta
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and SunOpta, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and SunOpta.
Diversification Opportunities for Joint Stock and SunOpta
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Joint and SunOpta is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and SunOpta go up and down completely randomly.
Pair Corralation between Joint Stock and SunOpta
Given the investment horizon of 90 days Joint Stock is expected to generate 1.13 times less return on investment than SunOpta. But when comparing it to its historical volatility, Joint Stock is 1.19 times less risky than SunOpta. It trades about 0.06 of its potential returns per unit of risk. SunOpta is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 574.00 in SunOpta on June 5, 2025 and sell it today you would earn a total of 44.00 from holding SunOpta or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Joint Stock vs. SunOpta
Performance |
| Timeline |
| Joint Stock |
| SunOpta |
Joint Stock and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and SunOpta
The main advantage of trading using opposite Joint Stock and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. Cellebrite DI | Joint Stock vs. Corpay Inc | Joint Stock vs. Dropbox | Joint Stock vs. Euronet Worldwide |
| SunOpta vs. The Hain Celestial | SunOpta vs. Lifeway Foods | SunOpta vs. John B Sanfilippo | SunOpta vs. MGP Ingredients |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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