Correlation Between Sweetgreen and Copa Holdings
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Copa Holdings 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 Copa Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Copa Holdings SA, you can compare the effects of market volatilities on Sweetgreen and Copa Holdings 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 Copa Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Copa Holdings.
Diversification Opportunities for Sweetgreen and Copa Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Copa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Copa Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copa Holdings SA 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 Copa Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copa Holdings SA has no effect on the direction of Sweetgreen i.e., Sweetgreen and Copa Holdings go up and down completely randomly.
Pair Corralation between Sweetgreen and Copa Holdings
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.42 times more return on investment than Copa Holdings. However, Sweetgreen is 2.42 times more volatile than Copa Holdings SA. It trades about 0.1 of its potential returns per unit of risk. Copa Holdings SA is currently generating about 0.03 per unit of risk. If you would invest 849.00 in Sweetgreen on August 28, 2024 and sell it today you would earn a total of 3,548 from holding Sweetgreen or generate 417.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Copa Holdings SA
Performance |
| Timeline |
| Sweetgreen |
| Copa Holdings SA |
Sweetgreen and Copa Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Copa Holdings
The main advantage of trading using opposite Sweetgreen and Copa Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Copa Holdings 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 Copa Holdings will offset losses from the drop in Copa Holdings' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Copa Holdings vs. SkyWest | Copa Holdings vs. Sun Country Airlines | Copa Holdings vs. Air Transport Services | Copa Holdings vs. Frontier Group Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |