Are both files 1 and 2 huge, or is it possible to keep one of them in memory while doing a single scan of the other?

If both files are huge, is it feasible to first sort the file contents by time so the files can be scanned in paralell? In pseudocode:

sort file1
sort file2
while (not end-of-file1 and not end-of-file2) {
  get next interval from file 2
  get all matching records from file 1
}
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