Correlation Between CopAur Minerals and SNDL

Can any of the company-specific risk be diversified away by investing in both CopAur Minerals 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 CopAur Minerals and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for CopAur Minerals and SNDL

0.58

Correlation Coefficient

CopAur Minerals  SNDL

Very weak diversification

The 3 months correlation between CopAur and SNDL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CopAur Minerals and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and CopAur Minerals 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 CopAur Minerals 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 CopAur Minerals i.e., CopAur Minerals and SNDL go up and down completely randomly.

Pair Corralation between CopAur Minerals and SNDL

Assuming the 90 days horizon CopAur Minerals is expected to under-perform the SNDL. In addition to that, CopAur Minerals is 2.48 times more volatile than SNDL Inc. It trades about -0.07 of its total potential returns per unit of risk. SNDL Inc is currently generating about 0.0 per unit of volatility. If you would invest  195.00  in SNDL Inc on October 9, 2024 and sell it today you would lose (6.00) from holding SNDL Inc or give up 3.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CopAur Minerals  vs.  SNDL Inc

CopAur Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CopAur Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 CopAur Minerals and SNDL

The main advantage of trading using opposite CopAur Minerals and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CopAur Minerals 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 CopAur Minerals 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.