Correlation Between Sweetgreen and Magplane Technology
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Magplane Technology 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 Magplane Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Magplane Technology, you can compare the effects of market volatilities on Sweetgreen and Magplane Technology 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 Magplane Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Magplane Technology.
Diversification Opportunities for Sweetgreen and Magplane Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sweetgreen and Magplane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Magplane Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magplane Technology 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 Magplane Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magplane Technology has no effect on the direction of Sweetgreen i.e., Sweetgreen and Magplane Technology go up and down completely randomly.
Pair Corralation between Sweetgreen and Magplane Technology
If you would invest 3,395 in Sweetgreen on September 12, 2024 and sell it today you would earn a total of 485.00 from holding Sweetgreen or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Magplane Technology
Performance |
| Timeline |
| Sweetgreen |
| Magplane Technology |
Sweetgreen and Magplane Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Magplane Technology
The main advantage of trading using opposite Sweetgreen and Magplane Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Magplane Technology 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 Magplane Technology will offset losses from the drop in Magplane Technology's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Magplane Technology vs. SEI Investments | Magplane Technology vs. Mesa Air Group | Magplane Technology vs. Montauk Renewables | Magplane Technology vs. Sun Country Airlines |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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