Correlation Between WILLIS and SNDL
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By analyzing existing cross correlation between WILLIS NORTH AMER and SNDL Inc, you can compare the effects of market volatilities on WILLIS 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 WILLIS with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WILLIS and SNDL.
Diversification Opportunities for WILLIS and SNDL
Average diversification
The 3 months correlation between WILLIS and SNDL is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding WILLIS NORTH AMER and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and WILLIS 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 WILLIS NORTH AMER 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 WILLIS i.e., WILLIS and SNDL go up and down completely randomly.
Pair Corralation between WILLIS and SNDL
Assuming the 90 days trading horizon WILLIS NORTH AMER is expected to under-perform the SNDL. But the bond apears to be less risky and, when comparing its historical volatility, WILLIS NORTH AMER is 8.06 times less risky than SNDL. The bond trades about -0.03 of its potential returns per unit of risk. The SNDL Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 145.00 in SNDL Inc on August 31, 2024 and sell it today you would earn a total of 51.00 from holding SNDL Inc or generate 35.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.59% |
| Values | Daily Returns |
WILLIS NORTH AMER vs. SNDL Inc
Performance |
| Timeline |
| WILLIS NORTH AMER |
| SNDL Inc |
WILLIS and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WILLIS and SNDL
The main advantage of trading using opposite WILLIS and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WILLIS 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.| WILLIS vs. Primoris Services | WILLIS vs. The Coca Cola | WILLIS vs. Oatly Group AB | WILLIS vs. Jacobs Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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