Correlation Between Rogers and SNDL

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

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

Diversification Opportunities for Rogers and SNDL

-0.31

Correlation Coefficient

Rogers  SNDL

Very good diversification

The 3 months correlation between Rogers and SNDL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rogers and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Rogers 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 Rogers 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 Rogers i.e., Rogers and SNDL go up and down completely randomly.

Pair Corralation between Rogers and SNDL

Considering the 90-day investment horizon Rogers is expected to generate 3.35 times less return on investment than SNDL. But when comparing it to its historical volatility, Rogers is 1.79 times less risky than SNDL. It trades about 0.06 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  131.00  in SNDL Inc on May 6, 2025 and sell it today you would earn a total of  34.00  from holding SNDL Inc or generate 25.95% return on investment over 90 days.

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

Rogers  vs.  SNDL Inc

Rogers

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Rogers may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SNDL Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SNDL Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, SNDL disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rogers and SNDL

The main advantage of trading using opposite Rogers and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers 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 Rogers 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..