Correlation Between Anterix and SNDL

Can any of the company-specific risk be diversified away by investing in both Anterix and SNDL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anterix and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anterix and SNDL Inc, you can compare the effects of market volatilities on Anterix 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 Anterix with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and SNDL.

Diversification Opportunities for Anterix and SNDL

0.2

Correlation Coefficient

Anterix  SNDL

Modest diversification

The 3 months correlation between Anterix and SNDL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Anterix 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 Anterix 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 Anterix i.e., Anterix and SNDL go up and down completely randomly.

Pair Corralation between Anterix and SNDL

Given the investment horizon of 90 days Anterix is expected to generate 2.6 times less return on investment than SNDL. But when comparing it to its historical volatility, Anterix is 1.61 times less risky than SNDL. It trades about 0.01 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  212.00  in SNDL Inc on September 26, 2024 and sell it today you would lose (30.00) from holding SNDL Inc or give up 14.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Anterix  vs.  SNDL Inc

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SNDL Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SNDL Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, SNDL is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Anterix and SNDL

The main advantage of trading using opposite Anterix and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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.

The idea behind Anterix and SNDL 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.