Correlation Between Sweetgreen and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Barings BDC 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 Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Barings BDC, you can compare the effects of market volatilities on Sweetgreen and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Barings BDC.
Diversification Opportunities for Sweetgreen and Barings BDC
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sweetgreen and Barings is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Sweetgreen i.e., Sweetgreen and Barings BDC go up and down completely randomly.
Pair Corralation between Sweetgreen and Barings BDC
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.8 times less return on investment than Barings BDC. In addition to that, Sweetgreen is 4.76 times more volatile than Barings BDC. It trades about 0.05 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.45 per unit of volatility. If you would invest 941.00 in Barings BDC on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Barings BDC or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Barings BDC
Performance |
| Timeline |
| Sweetgreen |
| Barings BDC |
Sweetgreen and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Barings BDC
The main advantage of trading using opposite Sweetgreen and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |