Correlation Between Sweetgreen and Hafnia
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Hafnia Limited, you can compare the effects of market volatilities on Sweetgreen and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Hafnia.
Diversification Opportunities for Sweetgreen and Hafnia
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Hafnia is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Sweetgreen i.e., Sweetgreen and Hafnia go up and down completely randomly.
Pair Corralation between Sweetgreen and Hafnia
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.66 times more return on investment than Hafnia. However, Sweetgreen is 1.66 times more volatile than Hafnia Limited. It trades about 0.07 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of risk. If you would invest 1,336 in Sweetgreen on August 24, 2024 and sell it today you would earn a total of 3,004 from holding Sweetgreen or generate 224.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.84% |
| Values | Daily Returns |
Sweetgreen vs. Hafnia Limited
Performance |
| Timeline |
| Sweetgreen |
| Hafnia Limited |
Sweetgreen and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Hafnia
The main advantage of trading using opposite Sweetgreen and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Hafnia vs. Sanyo Special Steel | Hafnia vs. Titan International | Hafnia vs. Olympic Steel | Hafnia vs. CECO Environmental Corp |
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 Positions Ratings module to 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.
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