Correlation Between Eva Live and SNDL

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

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

Diversification Opportunities for Eva Live and SNDL

0.37

Correlation Coefficient

Eva Live  SNDL

Weak diversification

The 3 months correlation between Eva and SNDL is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eva Live and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Eva Live 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 Eva Live 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 Eva Live i.e., Eva Live and SNDL go up and down completely randomly.

Pair Corralation between Eva Live and SNDL

Given the investment horizon of 90 days Eva Live is expected to under-perform the SNDL. In addition to that, Eva Live is 6.72 times more volatile than SNDL Inc. It trades about -0.02 of its total potential returns per unit of risk. SNDL Inc is currently generating about 0.01 per unit of volatility. If you would invest  189.00  in SNDL Inc on October 9, 2024 and sell it today you would earn a total of  0.00  from holding SNDL Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Eva Live  vs.  SNDL Inc

Eva Live

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eva Live are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Eva Live demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 Eva Live and SNDL

The main advantage of trading using opposite Eva Live and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eva Live 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 Eva Live 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.