Correlation Between National CineMedia and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Sweetgreen, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Sweetgreen.
Diversification Opportunities for National CineMedia and Sweetgreen
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and Sweetgreen is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and Sweetgreen go up and down completely randomly.
Pair Corralation between National CineMedia and Sweetgreen
Given the investment horizon of 90 days National CineMedia is expected to under-perform the Sweetgreen. But the stock apears to be less risky and, when comparing its historical volatility, National CineMedia is 1.57 times less risky than Sweetgreen. The stock trades about -0.07 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 3,883 in Sweetgreen on August 29, 2024 and sell it today you would earn a total of 444.00 from holding Sweetgreen or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Sweetgreen
Performance |
| Timeline |
| National CineMedia |
| Sweetgreen |
National CineMedia and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Sweetgreen
The main advantage of trading using opposite National CineMedia and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |