Correlation Between SNDL and Spectral
Can any of the company-specific risk be diversified away by investing in both SNDL and Spectral 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 Spectral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Spectral AI, you can compare the effects of market volatilities on SNDL and Spectral 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 Spectral. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Spectral.
Diversification Opportunities for SNDL and Spectral
Good diversification
The 3 months correlation between SNDL and Spectral is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Spectral AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral AI 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 Spectral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral AI has no effect on the direction of SNDL i.e., SNDL and Spectral go up and down completely randomly.
Pair Corralation between SNDL and Spectral
Given the investment horizon of 90 days SNDL Inc is expected to generate 0.95 times more return on investment than Spectral. However, SNDL Inc is 1.05 times less risky than Spectral. It trades about 0.24 of its potential returns per unit of risk. Spectral AI is currently generating about 0.05 per unit of risk. If you would invest 129.00 in SNDL Inc on June 5, 2025 and sell it today you would earn a total of 118.00 from holding SNDL Inc or generate 91.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Spectral AI
Performance |
| Timeline |
| SNDL Inc |
| Spectral AI |
SNDL and Spectral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Spectral
The main advantage of trading using opposite SNDL and Spectral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Spectral 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 Spectral will offset losses from the drop in Spectral's long position.The idea behind SNDL Inc and Spectral AI 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.| Spectral vs. ZhongAn Online P | Spectral vs. Dolphin Entertainment | Spectral vs. Codere Online Luxembourg | Spectral vs. Townsquare Media |
Check out your portfolio center.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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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