Correlation Between SNDL and Icahn
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By analyzing existing cross correlation between SNDL Inc and Icahn Enterprises 625, you can compare the effects of market volatilities on SNDL and Icahn 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 Icahn. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Icahn.
Diversification Opportunities for SNDL and Icahn
Average diversification
The 3 months correlation between SNDL and Icahn is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Icahn Enterprises 625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icahn Enterprises 625 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 Icahn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icahn Enterprises 625 has no effect on the direction of SNDL i.e., SNDL and Icahn go up and down completely randomly.
Pair Corralation between SNDL and Icahn
Given the investment horizon of 90 days SNDL Inc is expected to generate 3.97 times more return on investment than Icahn. However, SNDL is 3.97 times more volatile than Icahn Enterprises 625. It trades about 0.01 of its potential returns per unit of risk. Icahn Enterprises 625 is currently generating about 0.0 per unit of risk. If you would invest 244.00 in SNDL Inc on September 3, 2024 and sell it today you would lose (51.00) from holding SNDL Inc or give up 20.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SNDL Inc vs. Icahn Enterprises 625
Performance |
| Timeline |
| SNDL Inc |
| Icahn Enterprises 625 |
SNDL and Icahn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Icahn
The main advantage of trading using opposite SNDL and Icahn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Icahn 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 Icahn will offset losses from the drop in Icahn's long position.The idea behind SNDL Inc and Icahn Enterprises 625 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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