Correlation Between SNDL and I Minerals
Can any of the company-specific risk be diversified away by investing in both SNDL and I Minerals 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 I Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and I Minerals, you can compare the effects of market volatilities on SNDL and I Minerals 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 I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and I Minerals.
Diversification Opportunities for SNDL and I Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SNDL and IMAHF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals 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 I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of SNDL i.e., SNDL and I Minerals go up and down completely randomly.
Pair Corralation between SNDL and I Minerals
Given the investment horizon of 90 days SNDL is expected to generate 1.25 times less return on investment than I Minerals. But when comparing it to its historical volatility, SNDL Inc is 1.32 times less risky than I Minerals. It trades about 0.06 of its potential returns per unit of risk. I Minerals is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
SNDL Inc vs. I Minerals
Performance |
| Timeline |
| SNDL Inc |
| I Minerals |
SNDL and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and I Minerals
The main advantage of trading using opposite SNDL and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.The idea behind SNDL Inc and I Minerals 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.| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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