Correlation Between Syntec Optics and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Syntec Optics 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 Syntec Optics and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntec Optics Holdings and Sweetgreen, you can compare the effects of market volatilities on Syntec Optics 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 Syntec Optics with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Optics and Sweetgreen.
Diversification Opportunities for Syntec Optics and Sweetgreen
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Syntec and Sweetgreen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Optics Holdings and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Syntec Optics 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 Syntec Optics Holdings 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 Syntec Optics i.e., Syntec Optics and Sweetgreen go up and down completely randomly.
Pair Corralation between Syntec Optics and Sweetgreen
Given the investment horizon of 90 days Syntec Optics Holdings is expected to under-perform the Sweetgreen. In addition to that, Syntec Optics is 1.48 times more volatile than Sweetgreen. It trades about -0.05 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.13 per unit of volatility. If you would invest 2,641 in Sweetgreen on August 27, 2024 and sell it today you would earn a total of 1,699 from holding Sweetgreen or generate 64.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syntec Optics Holdings vs. Sweetgreen
Performance |
| Timeline |
| Syntec Optics Holdings |
| Sweetgreen |
Syntec Optics and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Optics and Sweetgreen
The main advantage of trading using opposite Syntec Optics and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Optics 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.| Syntec Optics vs. Sweetgreen | Syntec Optics vs. Evolution Mining | Syntec Optics vs. BJs Restaurants | Syntec Optics vs. Summit Materials |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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