Correlation Between GoHealth and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both GoHealth 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 GoHealth and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoHealth and Sweetgreen, you can compare the effects of market volatilities on GoHealth 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 GoHealth with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoHealth and Sweetgreen.
Diversification Opportunities for GoHealth and Sweetgreen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GoHealth and Sweetgreen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GoHealth and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and GoHealth 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 GoHealth 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 GoHealth i.e., GoHealth and Sweetgreen go up and down completely randomly.
Pair Corralation between GoHealth and Sweetgreen
Given the investment horizon of 90 days GoHealth is expected to generate 1.8 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, GoHealth is 1.05 times less risky than Sweetgreen. It trades about 0.08 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,748 in Sweetgreen on August 31, 2024 and sell it today you would earn a total of 495.00 from holding Sweetgreen or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoHealth vs. Sweetgreen
Performance |
| Timeline |
| GoHealth |
| Sweetgreen |
GoHealth and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoHealth and Sweetgreen
The main advantage of trading using opposite GoHealth and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoHealth 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.| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |