Correlation Between Sweetgreen and 49327V2C7

Can any of the company-specific risk be diversified away by investing in both Sweetgreen and 49327V2C7 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 49327V2C7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sweetgreen and KEY 49 08 AUG 32, you can compare the effects of market volatilities on Sweetgreen and 49327V2C7 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 49327V2C7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and 49327V2C7.

Diversification Opportunities for Sweetgreen and 49327V2C7

0.26

Correlation Coefficient

Sweetgreen  49327V2C7

Modest diversification

The 3 months correlation between Sweetgreen and 49327V2C7 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and KEY 49 08 AUG 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY 49 08 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 49327V2C7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY 49 08 has no effect on the direction of Sweetgreen i.e., Sweetgreen and 49327V2C7 go up and down completely randomly.

Pair Corralation between Sweetgreen and 49327V2C7

Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.84 times more return on investment than 49327V2C7. However, Sweetgreen is 1.19 times less risky than 49327V2C7. It trades about 0.0 of its potential returns per unit of risk. KEY 49 08 AUG 32 is currently generating about -0.03 per unit of risk. If you would invest  3,495  in Sweetgreen on September 26, 2024 and sell it today you would lose (164.00) from holding Sweetgreen or give up 4.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	74.6%
Values	Daily Returns

Sweetgreen  vs.  KEY 49 08 AUG 32

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.

KEY 49 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 49 08 AUG 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEY 49 08 AUG 32 investors.

Pair Trading with Sweetgreen and 49327V2C7

The main advantage of trading using opposite Sweetgreen and 49327V2C7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, 49327V2C7 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 49327V2C7 will offset losses from the drop in 49327V2C7's long position.

The idea behind Sweetgreen and KEY 49 08 AUG 32 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.