Correlation Between SNDL and ENTERGY
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By analyzing existing cross correlation between SNDL Inc and ENTERGY ARK INC, you can compare the effects of market volatilities on SNDL and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and ENTERGY.
Diversification Opportunities for SNDL and ENTERGY
Modest diversification
The 3 months correlation between SNDL and ENTERGY is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and ENTERGY ARK INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY ARK INC 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY ARK INC has no effect on the direction of SNDL i.e., SNDL and ENTERGY go up and down completely randomly.
Pair Corralation between SNDL and ENTERGY
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the ENTERGY. In addition to that, SNDL is 21.12 times more volatile than ENTERGY ARK INC. It trades about -0.08 of its total potential returns per unit of risk. ENTERGY ARK INC is currently generating about -0.13 per unit of volatility. If you would invest 9,877 in ENTERGY ARK INC on September 2, 2024 and sell it today you would lose (49.00) from holding ENTERGY ARK INC or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
SNDL Inc vs. ENTERGY ARK INC
Performance |
| Timeline |
| SNDL Inc |
| ENTERGY ARK INC |
SNDL and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and ENTERGY
The main advantage of trading using opposite SNDL and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.The idea behind SNDL Inc and ENTERGY ARK INC 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.| ENTERGY vs. AEP TEX INC | ENTERGY vs. US BANK NATIONAL | ENTERGY vs. International Business Machines | ENTERGY vs. Intel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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