Correlation Between Sweetgreen and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Cadeler AS 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 Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Cadeler AS, you can compare the effects of market volatilities on Sweetgreen and Cadeler AS 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 Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Cadeler AS.
Diversification Opportunities for Sweetgreen and Cadeler AS
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sweetgreen and Cadeler is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS 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 Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Sweetgreen i.e., Sweetgreen and Cadeler AS go up and down completely randomly.
Pair Corralation between Sweetgreen and Cadeler AS
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.12 times more return on investment than Cadeler AS. However, Sweetgreen is 2.12 times more volatile than Cadeler AS. It trades about 0.11 of its potential returns per unit of risk. Cadeler AS is currently generating about -0.22 per unit of risk. If you would invest 3,851 in Sweetgreen on August 30, 2024 and sell it today you would earn a total of 392.00 from holding Sweetgreen or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Cadeler AS
Performance |
| Timeline |
| Sweetgreen |
| Cadeler AS |
Sweetgreen and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Cadeler AS
The main advantage of trading using opposite Sweetgreen and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| Sweetgreen vs. Chipotle Mexican Grill | Sweetgreen vs. Yum Brands | Sweetgreen vs. The Wendys Co | Sweetgreen vs. McDonalds |
| Cadeler AS vs. CVW CleanTech | Cadeler AS vs. Pinterest | Cadeler AS vs. Senmiao Technology | Cadeler AS vs. Capital Clean Energy |
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.
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