Correlation Between Everi Holdings and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Everi Holdings 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 Everi Holdings and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Sweetgreen, you can compare the effects of market volatilities on Everi Holdings 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 Everi Holdings with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Sweetgreen.
Diversification Opportunities for Everi Holdings and Sweetgreen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Everi and Sweetgreen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Everi Holdings 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 Everi Holdings 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 Everi Holdings i.e., Everi Holdings and Sweetgreen go up and down completely randomly.
Pair Corralation between Everi Holdings and Sweetgreen
Given the investment horizon of 90 days Everi Holdings is expected to generate 13.33 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Everi Holdings is 23.64 times less risky than Sweetgreen. It trades about 0.21 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,851 in Sweetgreen on August 30, 2024 and sell it today you would earn a total of 392.00 from holding Sweetgreen or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Sweetgreen
Performance |
| Timeline |
| Everi Holdings |
| Sweetgreen |
Everi Holdings and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Sweetgreen
The main advantage of trading using opposite Everi Holdings and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings 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.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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