Correlation Between Sweetgreen and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and ECARX 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 ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and ECARX Holdings Warrants, you can compare the effects of market volatilities on Sweetgreen and ECARX 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 ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and ECARX Holdings.
Diversification Opportunities for Sweetgreen and ECARX Holdings
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sweetgreen and ECARX is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and ECARX Holdings Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Warrants 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 ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Warrants has no effect on the direction of Sweetgreen i.e., Sweetgreen and ECARX Holdings go up and down completely randomly.
Pair Corralation between Sweetgreen and ECARX Holdings
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the ECARX Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Sweetgreen is 4.1 times less risky than ECARX Holdings. The stock trades about -0.22 of its potential returns per unit of risk. The ECARX Holdings Warrants is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 4.00 in ECARX Holdings Warrants on November 28, 2024 and sell it today you would earn a total of 4.00 from holding ECARX Holdings Warrants or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Sweetgreen vs. ECARX Holdings Warrants
Performance |
| Timeline |
| Sweetgreen |
| ECARX Holdings Warrants |
Sweetgreen and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and ECARX Holdings
The main advantage of trading using opposite Sweetgreen and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, ECARX 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 ECARX Holdings will offset losses from the drop in ECARX Holdings' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| ECARX Holdings vs. ECARX Holdings Class | ECARX Holdings vs. Bridger Aerospace Group | ECARX Holdings vs. NewAmsterdam Pharma | ECARX Holdings vs. Gorilla Technology Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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