Correlation Between Sweetgreen and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Binah Capital 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 Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Binah Capital Group,, you can compare the effects of market volatilities on Sweetgreen and Binah Capital 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 Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Binah Capital.
Diversification Opportunities for Sweetgreen and Binah Capital
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sweetgreen and Binah is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, 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 Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Sweetgreen i.e., Sweetgreen and Binah Capital go up and down completely randomly.
Pair Corralation between Sweetgreen and Binah Capital
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 10.4 times less return on investment than Binah Capital. But when comparing it to its historical volatility, Sweetgreen is 6.0 times less risky than Binah Capital. It trades about 0.14 of its potential returns per unit of risk. Binah Capital Group, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3.11 in Binah Capital Group, on August 31, 2024 and sell it today you would earn a total of 2.83 from holding Binah Capital Group, or generate 91.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Sweetgreen vs. Binah Capital Group,
Performance |
| Timeline |
| Sweetgreen |
| Binah Capital Group, |
Sweetgreen and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Binah Capital
The main advantage of trading using opposite Sweetgreen and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Binah Capital vs. Axalta Coating Systems | Binah Capital vs. Hawkins | Binah Capital vs. Arrow Electronics | Binah Capital vs. Flexible Solutions 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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