Correlation Between SNDL and Bausch
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By analyzing existing cross correlation between SNDL Inc and Bausch Health Companies, you can compare the effects of market volatilities on SNDL and Bausch 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 Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Bausch.
Diversification Opportunities for SNDL and Bausch
Very good diversification
The 3 months correlation between SNDL and Bausch is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies 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 Bausch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of SNDL i.e., SNDL and Bausch go up and down completely randomly.
Pair Corralation between SNDL and Bausch
Given the investment horizon of 90 days SNDL Inc is expected to generate 1.23 times more return on investment than Bausch. However, SNDL is 1.23 times more volatile than Bausch Health Companies. It trades about -0.09 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.41 per unit of risk. If you would invest 182.00 in SNDL Inc on October 25, 2024 and sell it today you would lose (8.00) from holding SNDL Inc or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.78% |
| Values | Daily Returns |
SNDL Inc vs. Bausch Health Companies
Performance |
| Timeline |
| SNDL Inc |
| Bausch Health Companies |
SNDL and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Bausch
The main advantage of trading using opposite SNDL and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Bausch 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 Bausch will offset losses from the drop in Bausch's long position.The idea behind SNDL Inc and Bausch Health Companies 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.| Bausch vs. Integral Ad Science | Bausch vs. KeyCorp | Bausch vs. Boston Omaha Corp | Bausch vs. BOS Better Online |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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