Correlation Between Sweetgreen and Codere Online
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Codere Online 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 Codere Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Codere Online Corp, you can compare the effects of market volatilities on Sweetgreen and Codere Online 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 Codere Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Codere Online.
Diversification Opportunities for Sweetgreen and Codere Online
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Codere is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Codere Online Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Corp 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 Codere Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codere Online Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Codere Online go up and down completely randomly.
Pair Corralation between Sweetgreen and Codere Online
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Codere Online. In addition to that, Sweetgreen is 1.65 times more volatile than Codere Online Corp. It trades about -0.04 of its total potential returns per unit of risk. Codere Online Corp is currently generating about 0.02 per unit of volatility. If you would invest 750.00 in Codere Online Corp on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Codere Online Corp or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sweetgreen vs. Codere Online Corp
Performance |
| Timeline |
| Sweetgreen |
| Codere Online Corp |
Sweetgreen and Codere Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Codere Online
The main advantage of trading using opposite Sweetgreen and Codere Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Codere Online 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 Codere Online will offset losses from the drop in Codere Online's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Codere Online vs. Accel Entertainment | Codere Online vs. PlayAGS | Codere Online vs. Gambling Group | Codere Online vs. Canterbury Park Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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