Correlation Between BC Bud and SNDL
Can any of the company-specific risk be diversified away by investing in both BC Bud and SNDL 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 BC Bud and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The BC Bud and SNDL Inc, you can compare the effects of market volatilities on BC Bud and SNDL 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 BC Bud with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Bud and SNDL.
Diversification Opportunities for BC Bud and SNDL
Excellent diversification
The 3 months correlation between BCBCF and SNDL is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The BC Bud and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and BC Bud 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 The BC Bud are associated (or correlated) with SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of BC Bud i.e., BC Bud and SNDL go up and down completely randomly.
Pair Corralation between BC Bud and SNDL
Assuming the 90 days horizon The BC Bud is expected to generate 19.54 times more return on investment than SNDL. However, BC Bud is 19.54 times more volatile than SNDL Inc. It trades about 0.16 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.04 per unit of risk. If you would invest 0.88 in The BC Bud on September 12, 2024 and sell it today you would earn a total of 5.95 from holding The BC Bud or generate 676.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
The BC Bud vs. SNDL Inc
Performance |
| Timeline |
| BC Bud |
| SNDL Inc |
BC Bud and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Bud and SNDL
The main advantage of trading using opposite BC Bud and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Bud position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| BC Bud vs. 4Front Ventures Corp | BC Bud vs. Khiron Life Sciences | BC Bud vs. BellRock Brands | BC Bud vs. Elixinol Global |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |