Correlation Between SBC Medical and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both SBC Medical 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 SBC Medical and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBC Medical Group and Sweetgreen, you can compare the effects of market volatilities on SBC Medical 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 SBC Medical with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBC Medical and Sweetgreen.
Diversification Opportunities for SBC Medical and Sweetgreen
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SBC and Sweetgreen is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SBC Medical Group and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and SBC Medical 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 SBC Medical Group 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 SBC Medical i.e., SBC Medical and Sweetgreen go up and down completely randomly.
Pair Corralation between SBC Medical and Sweetgreen
Assuming the 90 days horizon SBC Medical Group is expected to generate 2.51 times more return on investment than Sweetgreen. However, SBC Medical is 2.51 times more volatile than Sweetgreen. It trades about 0.18 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.06 per unit of risk. If you would invest 7.31 in SBC Medical Group on October 25, 2024 and sell it today you would earn a total of 18.69 from holding SBC Medical Group or generate 255.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 17.44% |
| Values | Daily Returns |
SBC Medical Group vs. Sweetgreen
Performance |
| Timeline |
| SBC Medical Group |
| Sweetgreen |
SBC Medical and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBC Medical and Sweetgreen
The main advantage of trading using opposite SBC Medical and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBC Medical 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.| SBC Medical vs. 1 800 FLOWERSCOM | SBC Medical vs. Space Communication | SBC Medical vs. Asbury Automotive Group | SBC Medical vs. Reservoir Media |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |