Correlation Between Sweetgreen and Ballys Corp
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Ballys Corp 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 Ballys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Ballys Corp, you can compare the effects of market volatilities on Sweetgreen and Ballys Corp 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 Ballys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Ballys Corp.
Diversification Opportunities for Sweetgreen and Ballys Corp
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Ballys is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Ballys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballys 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 Ballys Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballys Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Ballys Corp go up and down completely randomly.
Pair Corralation between Sweetgreen and Ballys Corp
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 10.5 times more return on investment than Ballys Corp. However, Sweetgreen is 10.5 times more volatile than Ballys Corp. It trades about 0.03 of its potential returns per unit of risk. Ballys Corp is currently generating about 0.18 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Ballys Corp
Performance |
| Timeline |
| Sweetgreen |
| Ballys Corp |
Sweetgreen and Ballys Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Ballys Corp
The main advantage of trading using opposite Sweetgreen and Ballys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Ballys Corp 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 Ballys Corp will offset losses from the drop in Ballys Corp's long position.| Sweetgreen vs. Hyatt Hotels | Sweetgreen vs. Smart Share Global | Sweetgreen vs. Wyndham Hotels Resorts | Sweetgreen vs. WW International |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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