Correlation Between Assurant and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Assurant 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 Assurant and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Sweetgreen, you can compare the effects of market volatilities on Assurant 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 Assurant with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Sweetgreen.
Diversification Opportunities for Assurant and Sweetgreen
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assurant and Sweetgreen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Assurant 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 Assurant 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 Assurant i.e., Assurant and Sweetgreen go up and down completely randomly.
Pair Corralation between Assurant and Sweetgreen
Considering the 90-day investment horizon Assurant is expected to generate 0.34 times more return on investment than Sweetgreen. However, Assurant is 2.92 times less risky than Sweetgreen. It trades about 0.52 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.1 per unit of risk. If you would invest 19,176 in Assurant on September 2, 2024 and sell it today you would earn a total of 3,534 from holding Assurant or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Sweetgreen
Performance |
| Timeline |
| Assurant |
| Sweetgreen |
Assurant and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Sweetgreen
The main advantage of trading using opposite Assurant and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant 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.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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