Q: Just curious if there is a sector that dependably moves the opposite direction to Materials? Specifically I am thinking of Nutrien, and wondering if you can identify any companies that could be expected to move inversely to their Nutrien’s share price? Having ridden them up and back down, if I am going to keep owning the company I think I would intend to trade it in the future on the next upswing if I had an “anti-Nutrien” to switch into. Thanks for your thoughts.
5i Research Answer:
This is a very tough exercise and nothing obvious comes to mind. NTR's valuation and sentiment often stems from China's growth or lack thereof, but China would be positively correlated, not negatively. NTR actually has a Beta of 1.08, meaning it is fairly closely correlated to the TSX in general.