Correlation Between SNDL and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both SNDL and Beyond Meat 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 SNDL and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Beyond Meat, you can compare the effects of market volatilities on SNDL and Beyond Meat 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 SNDL with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Beyond Meat.
Diversification Opportunities for SNDL and Beyond Meat
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SNDL and Beyond is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and SNDL 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 SNDL Inc are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of SNDL i.e., SNDL and Beyond Meat go up and down completely randomly.
Pair Corralation between SNDL and Beyond Meat
Given the investment horizon of 90 days SNDL Inc is expected to generate 0.96 times more return on investment than Beyond Meat. However, SNDL Inc is 1.05 times less risky than Beyond Meat. It trades about -0.11 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.23 per unit of risk. If you would invest 221.00 in SNDL Inc on August 28, 2024 and sell it today you would lose (25.00) from holding SNDL Inc or give up 11.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Beyond Meat
Performance |
| Timeline |
| SNDL Inc |
| Beyond Meat |
SNDL and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Beyond Meat
The main advantage of trading using opposite SNDL and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.The idea behind SNDL Inc and Beyond Meat pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |