Correlation Between Sweetgreen and UTime
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and UTime 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 UTime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and UTime Limited, you can compare the effects of market volatilities on Sweetgreen and UTime 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 UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and UTime.
Diversification Opportunities for Sweetgreen and UTime
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sweetgreen and UTime is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Sweetgreen i.e., Sweetgreen and UTime go up and down completely randomly.
Pair Corralation between Sweetgreen and UTime
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.34 times more return on investment than UTime. However, Sweetgreen is 2.96 times less risky than UTime. It trades about 0.08 of its potential returns per unit of risk. UTime Limited is currently generating about 0.01 per unit of risk. If you would invest 1,054 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 2,869 from holding Sweetgreen or generate 272.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. UTime Limited
Performance |
| Timeline |
| Sweetgreen |
| UTime Limited |
Sweetgreen and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and UTime
The main advantage of trading using opposite Sweetgreen and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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