Correlation Between SUTTER and SNDL

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

By analyzing existing cross correlation between SUTTER HEALTH 3695 and SNDL Inc, you can compare the effects of market volatilities on SUTTER 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 SUTTER with a short position of SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUTTER and SNDL.

Diversification Opportunities for SUTTER and SNDL

0.08

Correlation Coefficient

SUTTER  SNDL

Significant diversification

The 3 months correlation between SUTTER and SNDL is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding SUTTER HEALTH 3695 and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and SUTTER 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 SUTTER HEALTH 3695 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 SUTTER i.e., SUTTER and SNDL go up and down completely randomly.

Pair Corralation between SUTTER and SNDL

Assuming the 90 days trading horizon SUTTER HEALTH 3695 is expected to generate 0.32 times more return on investment than SNDL. However, SUTTER HEALTH 3695 is 3.17 times less risky than SNDL. It trades about -0.09 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.08 per unit of risk. If you would invest  9,888  in SUTTER HEALTH 3695 on September 16, 2024 and sell it today you would lose (338.00) from holding SUTTER HEALTH 3695 or give up 3.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	60.0%
Values	Daily Returns

SUTTER HEALTH 3695  vs.  SNDL Inc

SUTTER HEALTH 3695

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUTTER HEALTH 3695 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SUTTER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 unsteady performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SUTTER and SNDL

The main advantage of trading using opposite SUTTER and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUTTER 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 SUTTER HEALTH 3695 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.