Correlation Between Sweetgreen and SBC Medical
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and SBC Medical 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 SBC Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and SBC Medical Group, you can compare the effects of market volatilities on Sweetgreen and SBC Medical 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 SBC Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and SBC Medical.
Diversification Opportunities for Sweetgreen and SBC Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and SBC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and SBC Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBC Medical Group 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 SBC Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBC Medical Group has no effect on the direction of Sweetgreen i.e., Sweetgreen and SBC Medical go up and down completely randomly.
Pair Corralation between Sweetgreen and SBC Medical
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.89 times more return on investment than SBC Medical. However, Sweetgreen is 1.12 times less risky than SBC Medical. It trades about 0.03 of its potential returns per unit of risk. SBC Medical Group is currently generating about -0.04 per unit of risk. If you would invest 3,313 in Sweetgreen on October 24, 2024 and sell it today you would earn a total of 37.00 from holding Sweetgreen or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. SBC Medical Group
Performance |
| Timeline |
| Sweetgreen |
| SBC Medical Group |
Sweetgreen and SBC Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and SBC Medical
The main advantage of trading using opposite Sweetgreen and SBC Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, SBC Medical 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 SBC Medical will offset losses from the drop in SBC Medical's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| SBC Medical vs. Ihuman Inc | SBC Medical vs. Skillful Craftsman Education | SBC Medical vs. Scholastic | SBC Medical vs. Pinterest |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |