Correlation Between I Minerals and SNDL
Can any of the company-specific risk be diversified away by investing in both I Minerals 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 I Minerals and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Minerals and SNDL Inc, you can compare the effects of market volatilities on I Minerals 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 I Minerals with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Minerals and SNDL.
Diversification Opportunities for I Minerals and SNDL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAHF and SNDL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding I Minerals and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and I Minerals 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 I Minerals 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 I Minerals i.e., I Minerals and SNDL go up and down completely randomly.
Pair Corralation between I Minerals and SNDL
Assuming the 90 days horizon I Minerals is expected to generate 1.32 times more return on investment than SNDL. However, I Minerals is 1.32 times more volatile than SNDL Inc. It trades about 0.06 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.06 per unit of risk. If you would invest 1.00 in I Minerals on September 1, 2024 and sell it today you would earn a total of 0.50 from holding I Minerals or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
I Minerals vs. SNDL Inc
Performance |
| Timeline |
| I Minerals |
| SNDL Inc |
I Minerals and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Minerals and SNDL
The main advantage of trading using opposite I Minerals and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Minerals 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.| I Minerals vs. Ainsworth Game Technology | I Minerals vs. ASE Industrial Holding | I Minerals vs. Taiwan Semiconductor Manufacturing | I Minerals vs. Kulicke and Soffa |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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