Correlation Between TradeUP Acquisition and SNDL

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

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

Diversification Opportunities for TradeUP Acquisition and SNDL

0.0

Correlation Coefficient

TradeUP Acquisition  SNDL

Pay attention - limited upside

The 3 months correlation between TradeUP and SNDL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TradeUP Acquisition Corp and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and TradeUP Acquisition 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 TradeUP Acquisition Corp 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 TradeUP Acquisition i.e., TradeUP Acquisition and SNDL go up and down completely randomly.

Pair Corralation between TradeUP Acquisition and SNDL

If you would invest (100.00) in TradeUP Acquisition Corp on December 19, 2024 and sell it today you would earn a total of  100.00  from holding TradeUP Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TradeUP Acquisition Corp  vs.  SNDL Inc

TradeUP Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days TradeUP Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, TradeUP Acquisition is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 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 TradeUP Acquisition and SNDL

The main advantage of trading using opposite TradeUP Acquisition and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeUP Acquisition 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 TradeUP Acquisition Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.