Correlation Between Sweetgreen and Bel Fuse
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Bel Fuse 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 Bel Fuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Bel Fuse A, you can compare the effects of market volatilities on Sweetgreen and Bel Fuse 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 Bel Fuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Bel Fuse.
Diversification Opportunities for Sweetgreen and Bel Fuse
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Bel is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Bel Fuse A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bel Fuse A 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 Bel Fuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bel Fuse A has no effect on the direction of Sweetgreen i.e., Sweetgreen and Bel Fuse go up and down completely randomly.
Pair Corralation between Sweetgreen and Bel Fuse
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Bel Fuse. In addition to that, Sweetgreen is 1.83 times more volatile than Bel Fuse A. It trades about -0.24 of its total potential returns per unit of risk. Bel Fuse A is currently generating about 0.01 per unit of volatility. If you would invest 8,601 in Bel Fuse A on November 28, 2024 and sell it today you would lose (22.00) from holding Bel Fuse A or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Bel Fuse A
Performance |
| Timeline |
| Sweetgreen |
| Bel Fuse A |
Sweetgreen and Bel Fuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Bel Fuse
The main advantage of trading using opposite Sweetgreen and Bel Fuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Bel Fuse 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 Bel Fuse will offset losses from the drop in Bel Fuse's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Bel Fuse vs. Richardson Electronics | Bel Fuse vs. LSI Industries | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Plexus Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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