Correlation Between Sweetgreen and KIMBERLY
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By analyzing existing cross correlation between Sweetgreen and KIMBERLY CLARK P, you can compare the effects of market volatilities on Sweetgreen and KIMBERLY 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 KIMBERLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and KIMBERLY.
Diversification Opportunities for Sweetgreen and KIMBERLY
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and KIMBERLY is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and KIMBERLY CLARK P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBERLY CLARK P 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 KIMBERLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBERLY CLARK P has no effect on the direction of Sweetgreen i.e., Sweetgreen and KIMBERLY go up and down completely randomly.
Pair Corralation between Sweetgreen and KIMBERLY
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.75 times more return on investment than KIMBERLY. However, Sweetgreen is 2.75 times more volatile than KIMBERLY CLARK P. It trades about 0.1 of its potential returns per unit of risk. KIMBERLY CLARK P is currently generating about 0.21 per unit of risk. If you would invest 3,802 in Sweetgreen on September 2, 2024 and sell it today you would earn a total of 296.00 from holding Sweetgreen or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Sweetgreen vs. KIMBERLY CLARK P
Performance |
| Timeline |
| Sweetgreen |
| KIMBERLY CLARK P |
Sweetgreen and KIMBERLY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and KIMBERLY
The main advantage of trading using opposite Sweetgreen and KIMBERLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, KIMBERLY 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 KIMBERLY will offset losses from the drop in KIMBERLY's long position.The idea behind Sweetgreen and KIMBERLY CLARK P 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.| KIMBERLY vs. Aegon NV ADR | KIMBERLY vs. Citizens | KIMBERLY vs. Sun Life Financial | KIMBERLY vs. Grocery Outlet Holding |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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