Correlation Between Acm Research and Sweetgreen

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

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

Diversification Opportunities for Acm Research and Sweetgreen

-0.05

Correlation Coefficient

Acm Research  Sweetgreen

Good diversification

The 3 months correlation between Acm and Sweetgreen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Acm Research 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 Acm Research are associated (or correlated) with Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Acm Research i.e., Acm Research and Sweetgreen go up and down completely randomly.

Pair Corralation between Acm Research and Sweetgreen

Given the investment horizon of 90 days Acm Research is expected to under-perform the Sweetgreen. In addition to that, Acm Research is 1.11 times more volatile than Sweetgreen. It trades about -0.02 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.01 per unit of volatility. If you would invest  3,583  in Sweetgreen on September 23, 2024 and sell it today you would lose (73.00) from holding Sweetgreen or give up 2.04% of portfolio value over 90 days.

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

Acm Research  vs.  Sweetgreen

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Sweetgreen

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sweetgreen are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Sweetgreen is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Acm Research and Sweetgreen

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

The idea behind Acm Research and Sweetgreen 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.