Correlation Between Caspian Services and SunOpta

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

By analyzing existing cross correlation between Caspian Services and SunOpta, you can compare the effects of market volatilities on Caspian Services 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 Caspian Services with a short position of SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caspian Services and SunOpta.

Diversification Opportunities for Caspian Services and SunOpta

0.16

Correlation Coefficient

Caspian Services  SunOpta

Average diversification

The 3 months correlation between Caspian and SunOpta is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Caspian Services and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta and Caspian Services 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 Caspian Services 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 Caspian Services i.e., Caspian Services and SunOpta go up and down completely randomly.

Pair Corralation between Caspian Services and SunOpta

Given the investment horizon of 90 days Caspian Services is expected to under-perform the SunOpta. In addition to that, Caspian Services is 3.58 times more volatile than SunOpta. It trades about -0.13 of its total potential returns per unit of risk. SunOpta is currently generating about 0.02 per unit of volatility. If you would invest  630.00  in SunOpta on May 16, 2025 and sell it today you would earn a total of  0.00  from holding SunOpta or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Caspian Services  vs.  SunOpta

Caspian Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

SunOpta

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, SunOpta is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Caspian Services and SunOpta

The main advantage of trading using opposite Caspian Services and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caspian Services 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.

The idea behind Caspian Services and SunOpta 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.