Correlation Between Sweetgreen and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Playtika Holding 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 Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Playtika Holding Corp, you can compare the effects of market volatilities on Sweetgreen and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Playtika Holding.
Diversification Opportunities for Sweetgreen and Playtika Holding
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweetgreen and Playtika is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Playtika Holding go up and down completely randomly.
Pair Corralation between Sweetgreen and Playtika Holding
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.34 times more return on investment than Playtika Holding. However, Sweetgreen is 2.34 times more volatile than Playtika Holding Corp. It trades about 0.13 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.02 per unit of risk. If you would invest 1,035 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 2,888 from holding Sweetgreen or generate 279.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Playtika Holding Corp
Performance |
| Timeline |
| Sweetgreen |
| Playtika Holding Corp |
Sweetgreen and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Playtika Holding
The main advantage of trading using opposite Sweetgreen and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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