Correlation Between Sweetgreen and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Dalata Hotel 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 Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Dalata Hotel Group, you can compare the effects of market volatilities on Sweetgreen and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Dalata Hotel.
Diversification Opportunities for Sweetgreen and Dalata Hotel
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Dalata is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Sweetgreen i.e., Sweetgreen and Dalata Hotel go up and down completely randomly.
Pair Corralation between Sweetgreen and Dalata Hotel
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 37.6 times more return on investment than Dalata Hotel. However, Sweetgreen is 37.6 times more volatile than Dalata Hotel Group. It trades about 0.14 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.13 per unit of risk. If you would invest 3,163 in Sweetgreen on August 29, 2024 and sell it today you would earn a total of 1,164 from holding Sweetgreen or generate 36.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sweetgreen vs. Dalata Hotel Group
Performance |
| Timeline |
| Sweetgreen |
| Dalata Hotel Group |
Sweetgreen and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Dalata Hotel
The main advantage of trading using opposite Sweetgreen and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Sweetgreen vs. Jack In The | Sweetgreen vs. Potbelly Co | Sweetgreen vs. BJs Restaurants | Sweetgreen vs. One Group Hospitality |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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