Correlation Between Sweetgreen and Semilux International
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Semilux International 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 Semilux International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Semilux International Ltd, you can compare the effects of market volatilities on Sweetgreen and Semilux International 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 Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Semilux International.
Diversification Opportunities for Sweetgreen and Semilux International
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sweetgreen and Semilux is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International 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 Semilux International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semilux International has no effect on the direction of Sweetgreen i.e., Sweetgreen and Semilux International go up and down completely randomly.
Pair Corralation between Sweetgreen and Semilux International
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Semilux International. But the stock apears to be less risky and, when comparing its historical volatility, Sweetgreen is 1.51 times less risky than Semilux International. The stock trades about -0.04 of its potential returns per unit of risk. The Semilux International Ltd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 141.00 in Semilux International Ltd on October 20, 2024 and sell it today you would earn a total of 17.00 from holding Semilux International Ltd or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Semilux International Ltd
Performance |
| Timeline |
| Sweetgreen |
| Semilux International |
Sweetgreen and Semilux International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Semilux International
The main advantage of trading using opposite Sweetgreen and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Semilux International 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 Semilux International will offset losses from the drop in Semilux International's long position.| Sweetgreen vs. Yum Brands | Sweetgreen vs. The Wendys Co | Sweetgreen vs. McDonalds | Sweetgreen vs. Wingstop |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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