Correlation Between DEERE and SNDL
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By analyzing existing cross correlation between DEERE CO and SNDL Inc, you can compare the effects of market volatilities on DEERE and SNDL 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 DEERE with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DEERE and SNDL.
Diversification Opportunities for DEERE and SNDL
Good diversification
The 3 months correlation between DEERE and SNDL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DEERE CO and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and DEERE 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 DEERE CO are associated (or correlated) with SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of DEERE i.e., DEERE and SNDL go up and down completely randomly.
Pair Corralation between DEERE and SNDL
Assuming the 90 days trading horizon DEERE CO is expected to generate 13.03 times more return on investment than SNDL. However, DEERE is 13.03 times more volatile than SNDL Inc. It trades about 0.06 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.04 per unit of risk. If you would invest 0.00 in DEERE CO on September 12, 2024 and sell it today you would earn a total of 7,928 from holding DEERE CO or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.07% |
| Values | Daily Returns |
DEERE CO vs. SNDL Inc
Performance |
| Timeline |
| DEERE CO |
| SNDL Inc |
DEERE and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DEERE and SNDL
The main advantage of trading using opposite DEERE and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DEERE position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| DEERE vs. AEP TEX INC | DEERE vs. US BANK NATIONAL | DEERE vs. Applied Blockchain | DEERE vs. BigBearai 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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