Correlation Between Hexo Corp and SNDL
Can any of the company-specific risk be diversified away by investing in both Hexo Corp 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 Hexo Corp and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexo Corp and SNDL Inc, you can compare the effects of market volatilities on Hexo Corp 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 Hexo Corp with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexo Corp and SNDL.
Diversification Opportunities for Hexo Corp and SNDL
Very good diversification
The 3 months correlation between Hexo and SNDL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hexo Corp and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Hexo Corp 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 Hexo Corp 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 Hexo Corp i.e., Hexo Corp and SNDL go up and down completely randomly.
Pair Corralation between Hexo Corp and SNDL
If you would invest 71.00 in Hexo Corp on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Hexo Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hexo Corp vs. SNDL Inc
Performance |
| Timeline |
| Hexo Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SNDL Inc |
Hexo Corp and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexo Corp and SNDL
The main advantage of trading using opposite Hexo Corp and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexo Corp 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.| Hexo Corp vs. Aurora Cannabis | Hexo Corp vs. Canopy Growth Corp | Hexo Corp vs. Curaleaf Holdings | Hexo Corp vs. OrganiGram Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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