Correlation Between Sweetgreen and ROC Energy
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and ROC Energy 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 ROC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and ROC Energy Acquisition, you can compare the effects of market volatilities on Sweetgreen and ROC Energy 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 ROC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and ROC Energy.
Diversification Opportunities for Sweetgreen and ROC Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and ROC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and ROC Energy Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROC Energy Acquisition 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 ROC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROC Energy Acquisition has no effect on the direction of Sweetgreen i.e., Sweetgreen and ROC Energy go up and down completely randomly.
Pair Corralation between Sweetgreen and ROC Energy
If you would invest 3,805 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 118.00 from holding Sweetgreen or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sweetgreen vs. ROC Energy Acquisition
Performance |
| Timeline |
| Sweetgreen |
| ROC Energy Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sweetgreen and ROC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and ROC Energy
The main advantage of trading using opposite Sweetgreen and ROC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, ROC Energy 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 ROC Energy will offset losses from the drop in ROC Energy's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| ROC Energy vs. Fluent Inc | ROC Energy vs. Triton International Limited | ROC Energy vs. Mitsubishi UFJ Lease | ROC Energy vs. China Aircraft Leasing |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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