Correlation Between Sweetgreen and Ark Restaurants
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Ark Restaurants 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 Sweetgreen and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Ark Restaurants Corp, you can compare the effects of market volatilities on Sweetgreen and Ark Restaurants 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 Sweetgreen with a short position of Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Ark Restaurants.
Diversification Opportunities for Sweetgreen and Ark Restaurants
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and Ark is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Ark Restaurants Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ark Restaurants Corp and Sweetgreen 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 Sweetgreen are associated (or correlated) with Ark Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ark Restaurants Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Ark Restaurants go up and down completely randomly.
Pair Corralation between Sweetgreen and Ark Restaurants
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.27 times more return on investment than Ark Restaurants. However, Sweetgreen is 2.27 times more volatile than Ark Restaurants Corp. It trades about 0.03 of its potential returns per unit of risk. Ark Restaurants Corp is currently generating about 0.05 per unit of risk. If you would invest 3,805 in Sweetgreen on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Sweetgreen or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Ark Restaurants Corp
Performance |
| Timeline |
| Sweetgreen |
| Ark Restaurants Corp |
Sweetgreen and Ark Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Ark Restaurants
The main advantage of trading using opposite Sweetgreen and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Ark Restaurants 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 Ark Restaurants will offset losses from the drop in Ark Restaurants' long position.| Sweetgreen vs. Hyatt Hotels | Sweetgreen vs. Smart Share Global | Sweetgreen vs. Wyndham Hotels Resorts | Sweetgreen vs. WW International |
| Ark Restaurants vs. Hyatt Hotels | Ark Restaurants vs. Smart Share Global | Ark Restaurants vs. Wyndham Hotels Resorts | Ark Restaurants vs. WW International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |