Correlation Between Sabre Corpo and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Sweetgreen, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Sweetgreen.
Diversification Opportunities for Sabre Corpo and Sweetgreen
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabre and Sweetgreen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Sweetgreen go up and down completely randomly.
Pair Corralation between Sabre Corpo and Sweetgreen
Given the investment horizon of 90 days Sabre Corpo is expected to generate 7.59 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Sabre Corpo is 1.34 times less risky than Sweetgreen. It trades about 0.02 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 2,892 from holding Sweetgreen or generate 280.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. Sweetgreen
Performance |
| Timeline |
| Sabre Corpo |
| Sweetgreen |
Sabre Corpo and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Sweetgreen
The main advantage of trading using opposite Sabre Corpo and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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