Correlation Between Neogen and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Sweetgreen, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Sweetgreen.
Diversification Opportunities for Neogen and Sweetgreen
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Neogen and Sweetgreen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Neogen 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 Neogen 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 Neogen i.e., Neogen and Sweetgreen go up and down completely randomly.
Pair Corralation between Neogen and Sweetgreen
Given the investment horizon of 90 days Neogen is expected to generate 0.49 times more return on investment than Sweetgreen. However, Neogen is 2.05 times less risky than Sweetgreen. It trades about -0.3 of its potential returns per unit of risk. Sweetgreen is currently generating about -0.24 per unit of risk. If you would invest 1,183 in Neogen on November 28, 2024 and sell it today you would lose (169.00) from holding Neogen or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Sweetgreen
Performance |
| Timeline |
| Neogen |
| Sweetgreen |
Neogen and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Sweetgreen
The main advantage of trading using opposite Neogen and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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