Correlation Between Sweetgreen and PT Indofood
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and PT Indofood 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 PT Indofood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and PT Indofood Sukses, you can compare the effects of market volatilities on Sweetgreen and PT Indofood 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 PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and PT Indofood.
Diversification Opportunities for Sweetgreen and PT Indofood
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and PIFMF is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and PT Indofood Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indofood Sukses 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 PT Indofood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indofood Sukses has no effect on the direction of Sweetgreen i.e., Sweetgreen and PT Indofood go up and down completely randomly.
Pair Corralation between Sweetgreen and PT Indofood
If you would invest 3,748 in Sweetgreen on August 31, 2024 and sell it today you would earn a total of 495.00 from holding Sweetgreen or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sweetgreen vs. PT Indofood Sukses
Performance |
| Timeline |
| Sweetgreen |
| PT Indofood Sukses |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sweetgreen and PT Indofood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and PT Indofood
The main advantage of trading using opposite Sweetgreen and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, PT Indofood 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 PT Indofood will offset losses from the drop in PT Indofood's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| PT Indofood vs. Transocean | PT Indofood vs. Sweetgreen | PT Indofood vs. Oasis Hotel Resort | PT Indofood vs. Cabo Drilling 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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