Correlation Between Sweetgreen and Land Securities
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Land Securities Group, you can compare the effects of market volatilities on Sweetgreen and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Land Securities.
Diversification Opportunities for Sweetgreen and Land Securities
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Land is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Sweetgreen i.e., Sweetgreen and Land Securities go up and down completely randomly.
Pair Corralation between Sweetgreen and Land Securities
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.73 times more return on investment than Land Securities. However, Sweetgreen is 2.73 times more volatile than Land Securities Group. It trades about 0.11 of its potential returns per unit of risk. Land Securities Group is currently generating about -0.01 per unit of risk. If you would invest 1,121 in Sweetgreen on September 14, 2024 and sell it today you would earn a total of 2,365 from holding Sweetgreen or generate 210.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.3% |
| Values | Daily Returns |
Sweetgreen vs. Land Securities Group
Performance |
| Timeline |
| Sweetgreen |
| Land Securities Group |
Sweetgreen and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Land Securities
The main advantage of trading using opposite Sweetgreen and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Land Securities vs. Franklin Wireless Corp | Land Securities vs. Nyxoah | Land Securities vs. AMCON Distributing | Land Securities vs. BBB Foods |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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