Correlation Between SNDL and Eaton Vance

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

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

Diversification Opportunities for SNDL and Eaton Vance

-0.01

Correlation Coefficient

SNDL  Eaton Vance

Good diversification

The 3 months correlation between SNDL and Eaton is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance National has no effect on the direction of SNDL i.e., SNDL and Eaton Vance go up and down completely randomly.

Pair Corralation between SNDL and Eaton Vance

Given the investment horizon of 90 days SNDL is expected to generate 1.31 times less return on investment than Eaton Vance. In addition to that, SNDL is 4.94 times more volatile than Eaton Vance National. It trades about 0.0 of its total potential returns per unit of risk. Eaton Vance National is currently generating about 0.03 per unit of volatility. If you would invest  1,543  in Eaton Vance National on August 21, 2024 and sell it today you would earn a total of  181.00  from holding Eaton Vance National or generate 11.73% 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.  Eaton Vance National

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 quite persistent fundamental indicators, SNDL is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Eaton Vance National

Risk-Adjusted Performance

2 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance National are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SNDL and Eaton Vance

The main advantage of trading using opposite SNDL and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.

The idea behind SNDL Inc and Eaton Vance National 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.