Correlation Between Sweetgreen and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Everi 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 Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Everi Holdings, you can compare the effects of market volatilities on Sweetgreen and Everi 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Everi Holdings.
Diversification Opportunities for Sweetgreen and Everi Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Everi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Sweetgreen i.e., Sweetgreen and Everi Holdings go up and down completely randomly.
Pair Corralation between Sweetgreen and Everi Holdings
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.79 times less return on investment than Everi Holdings. In addition to that, Sweetgreen is 1.26 times more volatile than Everi Holdings. It trades about 0.07 of its total potential returns per unit of risk. Everi Holdings is currently generating about 0.15 per unit of volatility. If you would invest 670.00 in Everi Holdings on August 24, 2024 and sell it today you would earn a total of 669.00 from holding Everi Holdings or generate 99.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Everi Holdings
Performance |
| Timeline |
| Sweetgreen |
| Everi Holdings |
Sweetgreen and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Everi Holdings
The main advantage of trading using opposite Sweetgreen and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Everi 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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