Correlation Between SNDL and WALMART
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By analyzing existing cross correlation between SNDL Inc and WALMART INC 65, you can compare the effects of market volatilities on SNDL and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and WALMART.
Diversification Opportunities for SNDL and WALMART
Good diversification
The 3 months correlation between SNDL and WALMART is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and WALMART INC 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 65 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 65 has no effect on the direction of SNDL i.e., SNDL and WALMART go up and down completely randomly.
Pair Corralation between SNDL and WALMART
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the WALMART. In addition to that, SNDL is 5.01 times more volatile than WALMART INC 65. It trades about -0.1 of its total potential returns per unit of risk. WALMART INC 65 is currently generating about -0.01 per unit of volatility. If you would invest 11,497 in WALMART INC 65 on August 27, 2024 and sell it today you would lose (26.00) from holding WALMART INC 65 or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
SNDL Inc vs. WALMART INC 65
Performance |
| Timeline |
| SNDL Inc |
| WALMART INC 65 |
SNDL and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and WALMART
The main advantage of trading using opposite SNDL and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.The idea behind SNDL Inc and WALMART INC 65 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.| WALMART vs. Beyond Meat | WALMART vs. SNDL Inc | WALMART vs. Zhihu Inc ADR | WALMART vs. Getty Images Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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