Correlation Between Sweetgreen and One Group
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and One Group 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 One Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and One Group Hospitality, you can compare the effects of market volatilities on Sweetgreen and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and One Group.
Diversification Opportunities for Sweetgreen and One Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sweetgreen and One is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Sweetgreen i.e., Sweetgreen and One Group go up and down completely randomly.
Pair Corralation between Sweetgreen and One Group
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.95 times more return on investment than One Group. However, Sweetgreen is 1.05 times less risky than One Group. It trades about 0.13 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.03 per unit of risk. If you would invest 2,985 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 938.00 from holding Sweetgreen or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. One Group Hospitality
Performance |
| Timeline |
| Sweetgreen |
| One Group Hospitality |
Sweetgreen and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and One Group
The main advantage of trading using opposite Sweetgreen and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| One Group vs. Hyatt Hotels | One Group vs. Smart Share Global | One Group vs. Sweetgreen | One Group vs. Wyndham Hotels Resorts |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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