Correlation Between Sweetgreen and Supercom
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Supercom 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 Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Supercom, you can compare the effects of market volatilities on Sweetgreen and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Supercom.
Diversification Opportunities for Sweetgreen and Supercom
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Supercom is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Sweetgreen i.e., Sweetgreen and Supercom go up and down completely randomly.
Pair Corralation between Sweetgreen and Supercom
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.98 times more return on investment than Supercom. However, Sweetgreen is 1.02 times less risky than Supercom. It trades about 0.07 of its potential returns per unit of risk. Supercom is currently generating about 0.0 per unit of risk. If you would invest 3,082 in Sweetgreen on August 30, 2024 and sell it today you would earn a total of 1,161 from holding Sweetgreen or generate 37.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Supercom
Performance |
| Timeline |
| Sweetgreen |
| Supercom |
Sweetgreen and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Supercom
The main advantage of trading using opposite Sweetgreen and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| Sweetgreen vs. Chipotle Mexican Grill | Sweetgreen vs. Yum Brands | Sweetgreen vs. The Wendys Co | Sweetgreen vs. McDonalds |
| Supercom vs. Fabrinet | Supercom vs. Knowles Cor | Supercom vs. Ubiquiti Networks | Supercom vs. AmpliTech Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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