Correlation Between Sweetgreen and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Victorias Secret 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 Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Victorias Secret Co, you can compare the effects of market volatilities on Sweetgreen and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Victorias Secret.
Diversification Opportunities for Sweetgreen and Victorias Secret
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sweetgreen and Victorias is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of Sweetgreen i.e., Sweetgreen and Victorias Secret go up and down completely randomly.
Pair Corralation between Sweetgreen and Victorias Secret
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.21 times more return on investment than Victorias Secret. However, Sweetgreen is 1.21 times more volatile than Victorias Secret Co. It trades about 0.09 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.03 per unit of risk. If you would invest 883.00 in Sweetgreen on September 13, 2024 and sell it today you would earn a total of 3,000 from holding Sweetgreen or generate 339.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. Victorias Secret Co
Performance |
| Timeline |
| Sweetgreen |
| Victorias Secret |
Sweetgreen and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and Victorias Secret
The main advantage of trading using opposite Sweetgreen and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
| Victorias Secret vs. Capri Holdings | Victorias Secret vs. Movado Group | Victorias Secret vs. Tapestry | Victorias Secret vs. Brilliant Earth Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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