Correlation Between Xiabuxiabu Catering and SNDL

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

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

Diversification Opportunities for Xiabuxiabu Catering and SNDL

0.08

Correlation Coefficient

Xiabuxiabu Catering  SNDL

Significant diversification

The 3 months correlation between Xiabuxiabu and SNDL is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Xiabuxiabu Catering i.e., Xiabuxiabu Catering and SNDL go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and SNDL

Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to under-perform the SNDL. In addition to that, Xiabuxiabu Catering is 2.79 times more volatile than SNDL Inc. It trades about -0.12 of its total potential returns per unit of risk. SNDL Inc is currently generating about -0.03 per unit of volatility. If you would invest  222.00  in SNDL Inc on September 28, 2024 and sell it today you would lose (43.00) from holding SNDL Inc or give up 19.37% of portfolio value over 90 days.

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

Xiabuxiabu Catering Management  vs.  SNDL Inc

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains 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 Xiabuxiabu Catering and SNDL

The main advantage of trading using opposite Xiabuxiabu Catering and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiabuxiabu Catering 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 Xiabuxiabu Catering Management 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.