Correlation Between E Home and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both E Home 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 E Home and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Home Household Service and Sweetgreen, you can compare the effects of market volatilities on E Home 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 E Home with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Home and Sweetgreen.
Diversification Opportunities for E Home and Sweetgreen
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EJH and Sweetgreen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding E Home Household Service and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and E Home 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 E Home Household Service 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 E Home i.e., E Home and Sweetgreen go up and down completely randomly.
Pair Corralation between E Home and Sweetgreen
Considering the 90-day investment horizon E Home Household Service is expected to under-perform the Sweetgreen. In addition to that, E Home is 1.59 times more volatile than Sweetgreen. It trades about -0.13 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.13 per unit of volatility. If you would invest 3,689 in Sweetgreen on August 24, 2024 and sell it today you would earn a total of 436.00 from holding Sweetgreen or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Home Household Service vs. Sweetgreen
Performance |
| Timeline |
| E Home Household |
| Sweetgreen |
E Home and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Home and Sweetgreen
The main advantage of trading using opposite E Home and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Home 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.| E Home vs. Smart Share Global | E Home vs. WW International | E Home vs. Frontdoor | E Home vs. Carriage Services |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |