Correlation Between Berkeley Lights and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Berkeley Lights 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 Berkeley Lights and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkeley Lights and Sweetgreen, you can compare the effects of market volatilities on Berkeley Lights 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 Berkeley Lights with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkeley Lights and Sweetgreen.
Diversification Opportunities for Berkeley Lights and Sweetgreen
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkeley and Sweetgreen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Berkeley Lights and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Berkeley Lights 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 Berkeley Lights 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 Berkeley Lights i.e., Berkeley Lights and Sweetgreen go up and down completely randomly.
Pair Corralation between Berkeley Lights and Sweetgreen
If you would invest 3,374 in Sweetgreen on September 17, 2024 and sell it today you would earn a total of 72.00 from holding Sweetgreen or generate 2.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Berkeley Lights vs. Sweetgreen
Performance |
Timeline |
Berkeley Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sweetgreen |
Berkeley Lights and Sweetgreen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Berkeley Lights and Sweetgreen
The main advantage of trading using opposite Berkeley Lights and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkeley Lights 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.Berkeley Lights vs. Cannae Holdings | Berkeley Lights vs. Cracker Barrel Old | Berkeley Lights vs. Skillful Craftsman Education | Berkeley Lights vs. Lindblad Expeditions Holdings |
Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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