Correlation Between Sweetgreen and Distoken Acquisition
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Distoken Acquisition 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 Distoken Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Distoken Acquisition, you can compare the effects of market volatilities on Sweetgreen and Distoken Acquisition 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 Distoken Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Distoken Acquisition.
Diversification Opportunities for Sweetgreen and Distoken Acquisition
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Distoken is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition 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 Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Sweetgreen i.e., Sweetgreen and Distoken Acquisition go up and down completely randomly.
Pair Corralation between Sweetgreen and Distoken Acquisition
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 9.78 times more return on investment than Distoken Acquisition. However, Sweetgreen is 9.78 times more volatile than Distoken Acquisition. It trades about 0.15 of its potential returns per unit of risk. Distoken Acquisition is currently generating about 0.24 per unit of risk. If you would invest 3,883 in Sweetgreen on August 28, 2024 and sell it today you would earn a total of 514.00 from holding Sweetgreen or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Distoken Acquisition
Performance |
| Timeline |
| Sweetgreen |
| Distoken Acquisition |
Sweetgreen and Distoken Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Distoken Acquisition
The main advantage of trading using opposite Sweetgreen and Distoken Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Distoken Acquisition 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 Distoken Acquisition will offset losses from the drop in Distoken Acquisition's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Distoken Acquisition vs. PowerUp Acquisition Corp | Distoken Acquisition vs. Aurora Innovation | Distoken Acquisition vs. HUMANA INC | Distoken Acquisition vs. Aquagold International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |