Correlation Between Sweetgreen and Eastgate Biotech
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Eastgate Biotech 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 Eastgate Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Eastgate Biotech Corp, you can compare the effects of market volatilities on Sweetgreen and Eastgate Biotech 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 Eastgate Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Eastgate Biotech.
Diversification Opportunities for Sweetgreen and Eastgate Biotech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Eastgate is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Eastgate Biotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastgate Biotech Corp 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 Eastgate Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastgate Biotech Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Eastgate Biotech go up and down completely randomly.
Pair Corralation between Sweetgreen and Eastgate Biotech
If you would invest 3,209 in Sweetgreen on November 3, 2024 and sell it today you would earn a total of 83.00 from holding Sweetgreen or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sweetgreen vs. Eastgate Biotech Corp
Performance |
| Timeline |
| Sweetgreen |
| Eastgate Biotech Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sweetgreen and Eastgate Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Eastgate Biotech
The main advantage of trading using opposite Sweetgreen and Eastgate Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Eastgate Biotech 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 Eastgate Biotech will offset losses from the drop in Eastgate Biotech's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Eastgate Biotech vs. Weyco Group | Eastgate Biotech vs. Avient Corp | Eastgate Biotech vs. CF Industries Holdings | Eastgate Biotech vs. Cheche Group Class |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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