Correlation Between Lion One and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Sweetgreen, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Sweetgreen.
Diversification Opportunities for Lion One and Sweetgreen
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lion and Sweetgreen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Sweetgreen go up and down completely randomly.
Pair Corralation between Lion One and Sweetgreen
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Sweetgreen. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.53 times less risky than Sweetgreen. The otc stock trades about -0.24 of its potential returns per unit of risk. The 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Sweetgreen
Performance |
| Timeline |
| Lion One Metals |
| Sweetgreen |
Lion One and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Sweetgreen
The main advantage of trading using opposite Lion One and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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