Correlation Between Pinstripes Holdings and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings 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 Pinstripes Holdings and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and Sweetgreen, you can compare the effects of market volatilities on Pinstripes Holdings 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 Pinstripes Holdings with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Sweetgreen.
Diversification Opportunities for Pinstripes Holdings and Sweetgreen
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pinstripes and Sweetgreen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Pinstripes Holdings 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 Pinstripes 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 Pinstripes Holdings i.e., Pinstripes Holdings and Sweetgreen go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Sweetgreen
Given the investment horizon of 90 days Pinstripes Holdings is expected to under-perform the Sweetgreen. In addition to that, Pinstripes Holdings is 1.19 times more volatile than Sweetgreen. It trades about -0.06 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.13 per unit of volatility. If you would invest 3,883 in Sweetgreen on August 27, 2024 and sell it today you would earn a total of 457.00 from holding Sweetgreen or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Sweetgreen
Performance |
| Timeline |
| Pinstripes Holdings |
| Sweetgreen |
Pinstripes Holdings and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Sweetgreen
The main advantage of trading using opposite Pinstripes Holdings and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings 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.| Pinstripes Holdings vs. MGIC Investment Corp | Pinstripes Holdings vs. Highway Holdings Limited | Pinstripes Holdings vs. Flexible Solutions International | Pinstripes Holdings vs. Summit Materials |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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