Correlation Between Sweetgreen and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Grupo Simec 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 Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Grupo Simec SAB, you can compare the effects of market volatilities on Sweetgreen and Grupo Simec 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 Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Grupo Simec.
Diversification Opportunities for Sweetgreen and Grupo Simec
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and Grupo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of Sweetgreen i.e., Sweetgreen and Grupo Simec go up and down completely randomly.
Pair Corralation between Sweetgreen and Grupo Simec
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.07 times more return on investment than Grupo Simec. However, Sweetgreen is 2.07 times more volatile than Grupo Simec SAB. It trades about 0.08 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.04 per unit of risk. If you would invest 2,513 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 1,585 from holding Sweetgreen or generate 63.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.12% |
| Values | Daily Returns |
Sweetgreen vs. Grupo Simec SAB
Performance |
| Timeline |
| Sweetgreen |
| Grupo Simec SAB |
Sweetgreen and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Grupo Simec
The main advantage of trading using opposite Sweetgreen and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |