Correlation Between SNDL and Ihuman
Can any of the company-specific risk be diversified away by investing in both SNDL and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Ihuman Inc, you can compare the effects of market volatilities on SNDL and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Ihuman.
Diversification Opportunities for SNDL and Ihuman
Average diversification
The 3 months correlation between SNDL and Ihuman is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of SNDL i.e., SNDL and Ihuman go up and down completely randomly.
Pair Corralation between SNDL and Ihuman
Given the investment horizon of 90 days SNDL Inc is expected to generate 1.31 times more return on investment than Ihuman. However, SNDL is 1.31 times more volatile than Ihuman Inc. It trades about 0.02 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.04 per unit of risk. If you would invest 190.00 in SNDL Inc on October 7, 2024 and sell it today you would earn a total of 1.00 from holding SNDL Inc or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Ihuman Inc
Performance |
| Timeline |
| SNDL Inc |
| Ihuman Inc |
SNDL and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Ihuman
The main advantage of trading using opposite SNDL and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.The idea behind SNDL Inc and Ihuman Inc 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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