Correlation Between Sweetgreen and Vision Marine
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Vision Marine 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 Vision Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Vision Marine Technologies, you can compare the effects of market volatilities on Sweetgreen and Vision Marine 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 Vision Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Vision Marine.
Diversification Opportunities for Sweetgreen and Vision Marine
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sweetgreen and Vision is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Sweetgreen i.e., Sweetgreen and Vision Marine go up and down completely randomly.
Pair Corralation between Sweetgreen and Vision Marine
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.82 times more return on investment than Vision Marine. However, Sweetgreen is 1.22 times less risky than Vision Marine. It trades about 0.05 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.36 per unit of risk. If you would invest 3,805 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 118.00 from holding Sweetgreen or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Vision Marine Technologies
Performance |
| Timeline |
| Sweetgreen |
| Vision Marine Techno |
Sweetgreen and Vision Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Vision Marine
The main advantage of trading using opposite Sweetgreen and Vision Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Vision Marine 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 Vision Marine will offset losses from the drop in Vision Marine's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Vision Marine vs. Thor Industries | Vision Marine vs. BRP Inc | Vision Marine vs. EZGO Technologies | Vision Marine vs. Polaris Industries |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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