Correlation Between SunOpta and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both SunOpta and Flutter Entertainment 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 Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Flutter Entertainment plc, you can compare the effects of market volatilities on SunOpta and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Flutter Entertainment.
Diversification Opportunities for SunOpta and Flutter Entertainment
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SunOpta and Flutter is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of SunOpta i.e., SunOpta and Flutter Entertainment go up and down completely randomly.
Pair Corralation between SunOpta and Flutter Entertainment
Given the investment horizon of 90 days SunOpta is expected to generate 2.59 times more return on investment than Flutter Entertainment. However, SunOpta is 2.59 times more volatile than Flutter Entertainment plc. It trades about 0.2 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.29 per unit of risk. If you would invest 371.00 in SunOpta on April 21, 2025 and sell it today you would earn a total of 258.00 from holding SunOpta or generate 69.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Flutter Entertainment plc
Performance |
| Timeline |
| SunOpta |
| Flutter Entertainment plc |
SunOpta and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Flutter Entertainment
The main advantage of trading using opposite SunOpta and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| SunOpta vs. Seneca Foods Corp | SunOpta vs. The Hain Celestial | SunOpta vs. Lifeway Foods | SunOpta vs. John B Sanfilippo |
| Flutter Entertainment vs. Dutch Bros | Flutter Entertainment vs. Chipotle Mexican Grill | Flutter Entertainment vs. Costco Wholesale Corp | Flutter Entertainment vs. Walt Disney |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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