Correlation Between Sweetgreen and GoHealth
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and GoHealth 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 GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and GoHealth, you can compare the effects of market volatilities on Sweetgreen and GoHealth 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 GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and GoHealth.
Diversification Opportunities for Sweetgreen and GoHealth
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and GoHealth is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth 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 GoHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoHealth has no effect on the direction of Sweetgreen i.e., Sweetgreen and GoHealth go up and down completely randomly.
Pair Corralation between Sweetgreen and GoHealth
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.05 times more return on investment than GoHealth. However, Sweetgreen is 1.05 times more volatile than GoHealth. It trades about 0.14 of its potential returns per unit of risk. GoHealth is currently generating about 0.08 per unit of risk. If you would invest 3,748 in Sweetgreen on August 31, 2024 and sell it today you would earn a total of 495.00 from holding Sweetgreen or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. GoHealth
Performance |
| Timeline |
| Sweetgreen |
| GoHealth |
Sweetgreen and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and GoHealth
The main advantage of trading using opposite Sweetgreen and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, GoHealth 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 GoHealth will offset losses from the drop in GoHealth's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |