Correlation Between SNDL and APACHE
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By analyzing existing cross correlation between SNDL Inc and APACHE P 425, you can compare the effects of market volatilities on SNDL and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and APACHE.
Diversification Opportunities for SNDL and APACHE
Modest diversification
The 3 months correlation between SNDL and APACHE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and APACHE P 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 425 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 425 has no effect on the direction of SNDL i.e., SNDL and APACHE go up and down completely randomly.
Pair Corralation between SNDL and APACHE
Given the investment horizon of 90 days SNDL Inc is expected to generate 1.27 times more return on investment than APACHE. However, SNDL is 1.27 times more volatile than APACHE P 425. It trades about -0.06 of its potential returns per unit of risk. APACHE P 425 is currently generating about -0.08 per unit of risk. If you would invest 208.00 in SNDL Inc on September 1, 2024 and sell it today you would lose (15.00) from holding SNDL Inc or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
SNDL Inc vs. APACHE P 425
Performance |
| Timeline |
| SNDL Inc |
| APACHE P 425 |
SNDL and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and APACHE
The main advantage of trading using opposite SNDL and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.The idea behind SNDL Inc and APACHE P 425 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.| APACHE vs. Franklin Credit Management | APACHE vs. Stepstone Group | APACHE vs. SNDL Inc | APACHE vs. Brandywine Realty Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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