Correlation Between SNDL and ENELIM
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By analyzing existing cross correlation between SNDL Inc and ENELIM 775 14 OCT 52, you can compare the effects of market volatilities on SNDL and ENELIM 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 ENELIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and ENELIM.
Diversification Opportunities for SNDL and ENELIM
Significant diversification
The 3 months correlation between SNDL and ENELIM is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and ENELIM 775 14 OCT 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENELIM 775 14 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 ENELIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENELIM 775 14 has no effect on the direction of SNDL i.e., SNDL and ENELIM go up and down completely randomly.
Pair Corralation between SNDL and ENELIM
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the ENELIM. In addition to that, SNDL is 4.55 times more volatile than ENELIM 775 14 OCT 52. It trades about -0.08 of its total potential returns per unit of risk. ENELIM 775 14 OCT 52 is currently generating about 0.04 per unit of volatility. If you would invest 12,203 in ENELIM 775 14 OCT 52 on September 2, 2024 and sell it today you would earn a total of 80.00 from holding ENELIM 775 14 OCT 52 or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
SNDL Inc vs. ENELIM 775 14 OCT 52
Performance |
| Timeline |
| SNDL Inc |
| ENELIM 775 14 |
SNDL and ENELIM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and ENELIM
The main advantage of trading using opposite SNDL and ENELIM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, ENELIM 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 ENELIM will offset losses from the drop in ENELIM's long position.The idea behind SNDL Inc and ENELIM 775 14 OCT 52 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.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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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