Correlation Between Sweetgreen and Dana
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Dana 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 Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Dana Inc, you can compare the effects of market volatilities on Sweetgreen and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Dana.
Diversification Opportunities for Sweetgreen and Dana
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sweetgreen and Dana is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Sweetgreen i.e., Sweetgreen and Dana go up and down completely randomly.
Pair Corralation between Sweetgreen and Dana
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Dana. In addition to that, Sweetgreen is 2.17 times more volatile than Dana Inc. It trades about -0.24 of its total potential returns per unit of risk. Dana Inc is currently generating about 0.0 per unit of volatility. If you would invest 1,563 in Dana Inc on November 28, 2024 and sell it today you would lose (5.00) from holding Dana Inc or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Dana Inc
Performance |
| Timeline |
| Sweetgreen |
| Dana Inc |
Sweetgreen and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Dana
The main advantage of trading using opposite Sweetgreen and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |