Correlation Between Phunware and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Phunware 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 Phunware and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phunware and Sweetgreen, you can compare the effects of market volatilities on Phunware 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 Phunware with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and Sweetgreen.
Diversification Opportunities for Phunware and Sweetgreen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phunware and Sweetgreen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Phunware 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 Phunware 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 Phunware i.e., Phunware and Sweetgreen go up and down completely randomly.
Pair Corralation between Phunware and Sweetgreen
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 Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Phunware vs. Sweetgreen
Performance |
| Timeline |
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sweetgreen |
Phunware and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phunware and Sweetgreen
The main advantage of trading using opposite Phunware and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phunware 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.| Phunware vs. Fevertree Drinks Plc | Phunware vs. Fernhill Beverage | Phunware vs. Diageo PLC ADR | Phunware vs. Cadence Design Systems |
| 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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