Correlation Between Sweetgreen and SunOpta
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and SunOpta, you can compare the effects of market volatilities on Sweetgreen and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and SunOpta.
Diversification Opportunities for Sweetgreen and SunOpta
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and SunOpta is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Sweetgreen i.e., Sweetgreen and SunOpta go up and down completely randomly.
Pair Corralation between Sweetgreen and SunOpta
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.6 times less return on investment than SunOpta. In addition to that, Sweetgreen is 2.15 times more volatile than SunOpta. It trades about 0.05 of its total potential returns per unit of risk. SunOpta is currently generating about 0.3 per unit of volatility. If you would invest 675.00 in SunOpta on September 3, 2024 and sell it today you would earn a total of 95.00 from holding SunOpta or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. SunOpta
Performance |
| Timeline |
| Sweetgreen |
| SunOpta |
Sweetgreen and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and SunOpta
The main advantage of trading using opposite Sweetgreen and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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