Correlation Between SNDL and Standard Biotools

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

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

Diversification Opportunities for SNDL and Standard Biotools

0.53

Correlation Coefficient

SNDL  Standard Biotools

Very weak diversification

The 3 months correlation between SNDL and Standard is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc and Standard Biotools in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Biotools 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 Standard Biotools. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Biotools has no effect on the direction of SNDL i.e., SNDL and Standard Biotools go up and down completely randomly.

Pair Corralation between SNDL and Standard Biotools

Given the investment horizon of 90 days SNDL Inc is expected to under-perform the Standard Biotools. In addition to that, SNDL is 1.24 times more volatile than Standard Biotools. It trades about -0.12 of its total potential returns per unit of risk. Standard Biotools is currently generating about 0.07 per unit of volatility. If you would invest  124.00  in Standard Biotools on August 25, 2025 and sell it today you would earn a total of  14.00  from holding Standard Biotools or generate 11.29% return on investment over 90 days.

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

SNDL Inc  vs.  Standard Biotools

SNDL Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days SNDL Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Standard Biotools

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Standard Biotools are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Standard Biotools sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SNDL and Standard Biotools

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

The idea behind SNDL Inc and Standard Biotools 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.