Correlation Between Sweetgreen and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Siriuspoint, you can compare the effects of market volatilities on Sweetgreen and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Siriuspoint.
Diversification Opportunities for Sweetgreen and Siriuspoint
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sweetgreen and Siriuspoint is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Sweetgreen i.e., Sweetgreen and Siriuspoint go up and down completely randomly.
Pair Corralation between Sweetgreen and Siriuspoint
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.57 times less return on investment than Siriuspoint. In addition to that, Sweetgreen is 1.82 times more volatile than Siriuspoint. It trades about 0.1 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.28 per unit of volatility. If you would invest 1,335 in Siriuspoint on September 2, 2024 and sell it today you would earn a total of 207.00 from holding Siriuspoint or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Siriuspoint
Performance |
| Timeline |
| Sweetgreen |
| Siriuspoint |
Sweetgreen and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Siriuspoint
The main advantage of trading using opposite Sweetgreen and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.The idea behind Sweetgreen and Siriuspoint pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |