Correlation Between Almacenes Xito and SNDL
Can any of the company-specific risk be diversified away by investing in both Almacenes Xito 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 Almacenes Xito and SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almacenes xito SA and SNDL Inc, you can compare the effects of market volatilities on Almacenes Xito 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 Almacenes Xito with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almacenes Xito and SNDL.
Diversification Opportunities for Almacenes Xito and SNDL
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Almacenes and SNDL is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Almacenes xito SA and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Almacenes Xito 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 Almacenes xito SA 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 Almacenes Xito i.e., Almacenes Xito and SNDL go up and down completely randomly.
Pair Corralation between Almacenes Xito and SNDL
Given the investment horizon of 90 days Almacenes xito SA is expected to generate 1.19 times more return on investment than SNDL. However, Almacenes Xito is 1.19 times more volatile than SNDL Inc. It trades about -0.03 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.11 per unit of risk. If you would invest 379.00 in Almacenes xito SA on December 4, 2024 and sell it today you would lose (32.00) from holding Almacenes xito SA or give up 8.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Almacenes xito SA vs. SNDL Inc
Performance |
Timeline |
Almacenes xito SA |
SNDL Inc |
Almacenes Xito and SNDL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Almacenes Xito and SNDL
The main advantage of trading using opposite Almacenes Xito and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almacenes Xito 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.Almacenes Xito vs. Weibo Corp | Almacenes Xito vs. Corning Incorporated | Almacenes Xito vs. Dave Busters Entertainment | Almacenes Xito vs. Insteel Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |