Correlation Between Sweetgreen and Granite Real
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Granite Real 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 Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Granite Real Estate, you can compare the effects of market volatilities on Sweetgreen and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Granite Real.
Diversification Opportunities for Sweetgreen and Granite Real
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Granite is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Sweetgreen i.e., Sweetgreen and Granite Real go up and down completely randomly.
Pair Corralation between Sweetgreen and Granite Real
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.22 times more return on investment than Granite Real. However, Sweetgreen is 2.22 times more volatile than Granite Real Estate. It trades about 0.06 of its potential returns per unit of risk. Granite Real Estate is currently generating about 0.04 per unit of risk. If you would invest 3,000 in Sweetgreen on September 13, 2024 and sell it today you would earn a total of 807.00 from holding Sweetgreen or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Sweetgreen vs. Granite Real Estate
Performance |
| Timeline |
| Sweetgreen |
| Granite Real Estate |
Sweetgreen and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Granite Real
The main advantage of trading using opposite Sweetgreen and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Granite Real vs. Aquagold International | Granite Real vs. Morningstar Unconstrained Allocation | Granite Real vs. Thrivent High Yield | Granite Real vs. High Yield Municipal Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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