Correlation Between Sweetgreen and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Hyatt Hotels 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 Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Hyatt Hotels, you can compare the effects of market volatilities on Sweetgreen and Hyatt Hotels 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 Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Hyatt Hotels.
Diversification Opportunities for Sweetgreen and Hyatt Hotels
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Hyatt is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels 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 Hyatt Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyatt Hotels has no effect on the direction of Sweetgreen i.e., Sweetgreen and Hyatt Hotels go up and down completely randomly.
Pair Corralation between Sweetgreen and Hyatt Hotels
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.59 times more return on investment than Hyatt Hotels. However, Sweetgreen is 2.59 times more volatile than Hyatt Hotels. It trades about 0.09 of its potential returns per unit of risk. Hyatt Hotels is currently generating about 0.07 per unit of risk. If you would invest 883.00 in Sweetgreen on September 13, 2024 and sell it today you would earn a total of 3,000 from holding Sweetgreen or generate 339.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sweetgreen vs. Hyatt Hotels
Performance |
| Timeline |
| Sweetgreen |
| Hyatt Hotels |
Sweetgreen and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Hyatt Hotels
The main advantage of trading using opposite Sweetgreen and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Hyatt Hotels 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 Hyatt Hotels will offset losses from the drop in Hyatt Hotels' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Hyatt Hotels vs. Yatra Online | Hyatt Hotels vs. Despegar Corp | Hyatt Hotels vs. Mondee Holdings | Hyatt Hotels vs. MakeMyTrip Limited |
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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