Correlation Between Sweetgreen and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Perseus Mining Limited, you can compare the effects of market volatilities on Sweetgreen and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Perseus Mining.
Diversification Opportunities for Sweetgreen and Perseus Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Perseus is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Sweetgreen i.e., Sweetgreen and Perseus Mining go up and down completely randomly.
Pair Corralation between Sweetgreen and Perseus Mining
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.21 times more return on investment than Perseus Mining. However, Sweetgreen is 1.21 times more volatile than Perseus Mining Limited. It trades about 0.18 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.11 per unit of risk. If you would invest 3,662 in Sweetgreen on August 25, 2024 and sell it today you would earn a total of 678.00 from holding Sweetgreen or generate 18.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Perseus Mining Limited
Performance |
| Timeline |
| Sweetgreen |
| Perseus Mining |
Sweetgreen and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Perseus Mining
The main advantage of trading using opposite Sweetgreen and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Orezone Gold 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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