Correlation Between Sweetgreen and Canopy Growth
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Canopy Growth 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 Canopy Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Canopy Growth Corp, you can compare the effects of market volatilities on Sweetgreen and Canopy Growth 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 Canopy Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Canopy Growth.
Diversification Opportunities for Sweetgreen and Canopy Growth
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Canopy is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Canopy Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canopy Growth 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 Canopy Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canopy Growth Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Canopy Growth go up and down completely randomly.
Pair Corralation between Sweetgreen and Canopy Growth
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.5 times more return on investment than Canopy Growth. However, Sweetgreen is 2.02 times less risky than Canopy Growth. It trades about 0.08 of its potential returns per unit of risk. Canopy Growth Corp is currently generating about 0.0 per unit of risk. If you would invest 843.00 in Sweetgreen on September 14, 2024 and sell it today you would earn a total of 2,643 from holding Sweetgreen or generate 313.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sweetgreen vs. Canopy Growth Corp
Performance |
| Timeline |
| Sweetgreen |
| Canopy Growth Corp |
Sweetgreen and Canopy Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Canopy Growth
The main advantage of trading using opposite Sweetgreen and Canopy Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Canopy Growth 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 Canopy Growth will offset losses from the drop in Canopy Growth's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Canopy Growth vs. Micron Technology | Canopy Growth vs. Sweetgreen | Canopy Growth vs. Ark Restaurants Corp | Canopy Growth vs. STMicroelectronics NV ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |