Correlation Between SNDL and WYNMAC

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

By analyzing existing cross correlation between SNDL Inc and WYNMAC 5625 26 AUG 28, you can compare the effects of market volatilities on SNDL and WYNMAC 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 SNDL with a short position of WYNMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and WYNMAC.

Diversification Opportunities for SNDL and WYNMAC

-0.35

Correlation Coefficient

SNDL  WYNMAC

Very good diversification

The 3 months correlation between SNDL and WYNMAC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and WYNMAC 5625 26 AUG 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WYNMAC 5625 26 and SNDL 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 SNDL Inc are associated (or correlated) with WYNMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WYNMAC 5625 26 has no effect on the direction of SNDL i.e., SNDL and WYNMAC go up and down completely randomly.

Pair Corralation between SNDL and WYNMAC

Given the investment horizon of 90 days SNDL Inc is expected to under-perform the WYNMAC. In addition to that, SNDL is 6.97 times more volatile than WYNMAC 5625 26 AUG 28. It trades about -0.09 of its total potential returns per unit of risk. WYNMAC 5625 26 AUG 28 is currently generating about -0.05 per unit of volatility. If you would invest  9,613  in WYNMAC 5625 26 AUG 28 on December 22, 2024 and sell it today you would lose (105.00) from holding WYNMAC 5625 26 AUG 28 or give up 1.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

SNDL Inc  vs.  WYNMAC 5625 26 AUG 28

SNDL Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days SNDL Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

WYNMAC 5625 26

Risk-Adjusted Performance

Insignificant

Over the last 90 days WYNMAC 5625 26 AUG 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, WYNMAC is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SNDL and WYNMAC

The main advantage of trading using opposite SNDL and WYNMAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, WYNMAC 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 WYNMAC will offset losses from the drop in WYNMAC's long position.

The idea behind SNDL Inc and WYNMAC 5625 26 AUG 28 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.