Correlation Between Iris Energy and SNDL
Can any of the company-specific risk be diversified away by investing in both Iris Energy 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 Iris Energy and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iris Energy and SNDL Inc, you can compare the effects of market volatilities on Iris Energy 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 Iris Energy with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Energy and SNDL.
Diversification Opportunities for Iris Energy and SNDL
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iris and SNDL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Iris Energy and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Iris Energy 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 Iris Energy 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 Iris Energy i.e., Iris Energy and SNDL go up and down completely randomly.
Pair Corralation between Iris Energy and SNDL
Given the investment horizon of 90 days Iris Energy is expected to under-perform the SNDL. In addition to that, Iris Energy is 1.83 times more volatile than SNDL Inc. It trades about -0.17 of its total potential returns per unit of risk. SNDL Inc is currently generating about 0.01 per unit of volatility. If you would invest 189.00 in SNDL Inc on October 9, 2024 and sell it today you would earn a total of 0.00 from holding SNDL Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iris Energy vs. SNDL Inc
Performance |
| Timeline |
| Iris Energy |
| SNDL Inc |
Iris Energy and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Energy and SNDL
The main advantage of trading using opposite Iris Energy and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Energy 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.| Iris Energy vs. Forsys Metals Corp | Iris Energy vs. Dine Brands Global | Iris Energy vs. Sweetgreen | Iris Energy vs. Flanigans Enterprises |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |