Correlation Between Sweetgreen and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Schibsted ASA 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 Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Schibsted ASA ADR, you can compare the effects of market volatilities on Sweetgreen and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Schibsted ASA.
Diversification Opportunities for Sweetgreen and Schibsted ASA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Schibsted is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Schibsted ASA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA ADR 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA ADR has no effect on the direction of Sweetgreen i.e., Sweetgreen and Schibsted ASA go up and down completely randomly.
Pair Corralation between Sweetgreen and Schibsted ASA
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.2 times more return on investment than Schibsted ASA. However, Sweetgreen is 1.2 times more volatile than Schibsted ASA ADR. It trades about 0.07 of its potential returns per unit of risk. Schibsted ASA ADR is currently generating about 0.07 per unit of risk. If you would invest 1,526 in Sweetgreen on September 12, 2024 and sell it today you would earn a total of 2,134 from holding Sweetgreen or generate 139.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.57% |
| Values | Daily Returns |
Sweetgreen vs. Schibsted ASA ADR
Performance |
| Timeline |
| Sweetgreen |
| Schibsted ASA ADR |
Sweetgreen and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Schibsted ASA
The main advantage of trading using opposite Sweetgreen and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Schibsted ASA vs. Skillful Craftsman Education | Schibsted ASA vs. Where Food Comes | Schibsted ASA vs. Tyson Foods | Schibsted ASA vs. FitLife Brands, Common |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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