Correlation Between Sweetgreen and ATMOS

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

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

Diversification Opportunities for Sweetgreen and ATMOS

0.21

Correlation Coefficient

Sweetgreen  ATMOS

Modest diversification

The 3 months correlation between Sweetgreen and ATMOS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P and Sweetgreen 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 Sweetgreen are associated (or correlated) with ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of Sweetgreen i.e., Sweetgreen and ATMOS go up and down completely randomly.

Pair Corralation between Sweetgreen and ATMOS

Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the ATMOS. In addition to that, Sweetgreen is 4.35 times more volatile than ATMOS ENERGY P. It trades about -0.06 of its total potential returns per unit of risk. ATMOS ENERGY P is currently generating about -0.17 per unit of volatility. If you would invest  10,114  in ATMOS ENERGY P on September 26, 2024 and sell it today you would lose (315.00) from holding ATMOS ENERGY P or give up 3.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	41.46%
Values	Daily Returns

Sweetgreen  vs.  ATMOS ENERGY P

Sweetgreen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sweetgreen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Sweetgreen is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

ATMOS ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATMOS ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ATMOS ENERGY P investors.

Pair Trading with Sweetgreen and ATMOS

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

The idea behind Sweetgreen and ATMOS ENERGY P 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.