Correlation Between Contagious Gaming and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming 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 Contagious Gaming and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and Sweetgreen, you can compare the effects of market volatilities on Contagious Gaming 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 Contagious Gaming with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and Sweetgreen.
Diversification Opportunities for Contagious Gaming and Sweetgreen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and Sweetgreen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming i.e., Contagious Gaming and Sweetgreen go up and down completely randomly.
Pair Corralation between Contagious Gaming and Sweetgreen
Assuming the 90 days horizon Contagious Gaming is expected to under-perform the Sweetgreen. But the pink sheet apears to be less risky and, when comparing its historical volatility, Contagious Gaming is 1.77 times less risky than Sweetgreen. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Sweetgreen is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 2,892 from holding Sweetgreen or generate 280.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Contagious Gaming vs. Sweetgreen
Performance |
| Timeline |
| Contagious Gaming |
| Sweetgreen |
Contagious Gaming and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and Sweetgreen
The main advantage of trading using opposite Contagious Gaming and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming 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.| Contagious Gaming vs. US Global Investors | Contagious Gaming vs. Waste Management | Contagious Gaming vs. Viemed Healthcare | Contagious Gaming vs. Omni Health |
| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |