Correlation Between SNDL and PS International
Can any of the company-specific risk be diversified away by investing in both SNDL and PS International 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 PS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and PS International Group, you can compare the effects of market volatilities on SNDL and PS International 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 PS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and PS International.
Diversification Opportunities for SNDL and PS International
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SNDL and PSIG is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and PS International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS International 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 PS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS International has no effect on the direction of SNDL i.e., SNDL and PS International go up and down completely randomly.
Pair Corralation between SNDL and PS International
Given the investment horizon of 90 days SNDL Inc is expected to generate 0.18 times more return on investment than PS International. However, SNDL Inc is 5.53 times less risky than PS International. It trades about -0.01 of its potential returns per unit of risk. PS International Group is currently generating about -0.05 per unit of risk. If you would invest 216.00 in SNDL Inc on September 3, 2024 and sell it today you would lose (23.00) from holding SNDL Inc or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.0% |
| Values | Daily Returns |
SNDL Inc vs. PS International Group
Performance |
| Timeline |
| SNDL Inc |
| PS International |
SNDL and PS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and PS International
The main advantage of trading using opposite SNDL and PS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, PS International 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 PS International will offset losses from the drop in PS International's long position.The idea behind SNDL Inc and PS International Group 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.| PS International vs. AmTrust Financial Services | PS International vs. Encore Capital Group | PS International vs. Mill City Ventures | PS International vs. KeyCorp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |