Correlation Between SNDL and WELLTOWER
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By analyzing existing cross correlation between SNDL Inc and WELLTOWER INC, you can compare the effects of market volatilities on SNDL and WELLTOWER 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 WELLTOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and WELLTOWER.
Diversification Opportunities for SNDL and WELLTOWER
Significant diversification
The 3 months correlation between SNDL and WELLTOWER is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and WELLTOWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC has no effect on the direction of SNDL i.e., SNDL and WELLTOWER go up and down completely randomly.
Pair Corralation between SNDL and WELLTOWER
Given the investment horizon of 90 days SNDL Inc is expected to generate 8.03 times more return on investment than WELLTOWER. However, SNDL is 8.03 times more volatile than WELLTOWER INC. It trades about 0.02 of its potential returns per unit of risk. WELLTOWER INC is currently generating about 0.04 per unit of risk. If you would invest 213.00 in SNDL Inc on August 31, 2024 and sell it today you would lose (20.00) from holding SNDL Inc or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.28% |
| Values | Daily Returns |
SNDL Inc vs. WELLTOWER INC
Performance |
| Timeline |
| SNDL Inc |
| WELLTOWER INC |
SNDL and WELLTOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and WELLTOWER
The main advantage of trading using opposite SNDL and WELLTOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, WELLTOWER 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 WELLTOWER will offset losses from the drop in WELLTOWER's long position.The idea behind SNDL Inc and WELLTOWER 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.| WELLTOWER vs. Dennys Corp | WELLTOWER vs. Park Hotels Resorts | WELLTOWER vs. Cardinal Health | WELLTOWER vs. Olympic Steel |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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