Correlation Between Galaxy Payroll and SNDL

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

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

Diversification Opportunities for Galaxy Payroll and SNDL

0.8

Correlation Coefficient

Galaxy Payroll  SNDL

Very poor diversification

The 3 months correlation between Galaxy and SNDL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Payroll Group and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Galaxy Payroll 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 Galaxy Payroll Group 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 Galaxy Payroll i.e., Galaxy Payroll and SNDL go up and down completely randomly.

Pair Corralation between Galaxy Payroll and SNDL

Given the investment horizon of 90 days Galaxy Payroll Group is expected to generate 3.34 times more return on investment than SNDL. However, Galaxy Payroll is 3.34 times more volatile than SNDL Inc. It trades about 0.32 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.07 per unit of risk. If you would invest  76.00  in Galaxy Payroll Group on October 20, 2024 and sell it today you would earn a total of  46.00  from holding Galaxy Payroll Group or generate 60.53% return on investment over 90 days.

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

Galaxy Payroll Group  vs.  SNDL Inc

Galaxy Payroll Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galaxy Payroll Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating 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 latest unsteady performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Galaxy Payroll and SNDL

The main advantage of trading using opposite Galaxy Payroll and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Payroll 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 Galaxy Payroll Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.