Correlation Between Sweetgreen and Evolution Mining
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Evolution Mining 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 Evolution Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Evolution Mining, you can compare the effects of market volatilities on Sweetgreen and Evolution Mining 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 Evolution Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Evolution Mining.
Diversification Opportunities for Sweetgreen and Evolution Mining
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Evolution is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Evolution Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining 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 Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of Sweetgreen i.e., Sweetgreen and Evolution Mining go up and down completely randomly.
Pair Corralation between Sweetgreen and Evolution Mining
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.4 times more return on investment than Evolution Mining. However, Sweetgreen is 1.4 times more volatile than Evolution Mining. It trades about 0.14 of its potential returns per unit of risk. Evolution Mining is currently generating about 0.0 per unit of risk. If you would invest 3,748 in Sweetgreen on August 31, 2024 and sell it today you would earn a total of 495.00 from holding Sweetgreen or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Evolution Mining
Performance |
| Timeline |
| Sweetgreen |
| Evolution Mining |
Sweetgreen and Evolution Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Evolution Mining
The main advantage of trading using opposite Sweetgreen and Evolution Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Evolution Mining 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 Evolution Mining will offset losses from the drop in Evolution Mining's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Evolution Mining vs. Regis Resources | Evolution Mining vs. West African Resources | Evolution Mining vs. Allegiant Gold | Evolution Mining vs. Minaurum Gold |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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