Correlation Between Sweetgreen and Kandi Technologies
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Kandi Technologies 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 Kandi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Kandi Technologies Group, you can compare the effects of market volatilities on Sweetgreen and Kandi Technologies 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 Kandi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Kandi Technologies.
Diversification Opportunities for Sweetgreen and Kandi Technologies
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and Kandi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Kandi Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandi Technologies 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 Kandi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandi Technologies has no effect on the direction of Sweetgreen i.e., Sweetgreen and Kandi Technologies go up and down completely randomly.
Pair Corralation between Sweetgreen and Kandi Technologies
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.65 times more return on investment than Kandi Technologies. However, Sweetgreen is 1.65 times more volatile than Kandi Technologies Group. It trades about 0.07 of its potential returns per unit of risk. Kandi Technologies Group is currently generating about -0.11 per unit of risk. If you would invest 1,526 in Sweetgreen on September 12, 2024 and sell it today you would earn a total of 2,134 from holding Sweetgreen or generate 139.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Kandi Technologies Group
Performance |
| Timeline |
| Sweetgreen |
| Kandi Technologies |
Sweetgreen and Kandi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Kandi Technologies
The main advantage of trading using opposite Sweetgreen and Kandi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Kandi Technologies 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 Kandi Technologies will offset losses from the drop in Kandi Technologies' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Kandi Technologies vs. Cooper Stnd | Kandi Technologies vs. Motorcar Parts of | Kandi Technologies vs. American Axle Manufacturing | Kandi Technologies vs. Stoneridge |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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