Correlation Between Sweetgreen and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Cumulus Media 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 Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Cumulus Media Class, you can compare the effects of market volatilities on Sweetgreen and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Cumulus Media.
Diversification Opportunities for Sweetgreen and Cumulus Media
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and Cumulus is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Sweetgreen i.e., Sweetgreen and Cumulus Media go up and down completely randomly.
Pair Corralation between Sweetgreen and Cumulus Media
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.16 times more return on investment than Cumulus Media. However, Sweetgreen is 1.16 times more volatile than Cumulus Media Class. It trades about 0.14 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.14 per unit of risk. If you would invest 941.00 in Sweetgreen on August 26, 2024 and sell it today you would earn a total of 3,399 from holding Sweetgreen or generate 361.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Cumulus Media Class
Performance |
| Timeline |
| Sweetgreen |
| Cumulus Media Class |
Sweetgreen and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Cumulus Media
The main advantage of trading using opposite Sweetgreen and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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