Correlation Between Sweetgreen and ZipLink
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and ZipLink 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 ZipLink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and ZipLink, you can compare the effects of market volatilities on Sweetgreen and ZipLink 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 ZipLink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and ZipLink.
Diversification Opportunities for Sweetgreen and ZipLink
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sweetgreen and ZipLink is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and ZipLink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZipLink 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 ZipLink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZipLink has no effect on the direction of Sweetgreen i.e., Sweetgreen and ZipLink go up and down completely randomly.
Pair Corralation between Sweetgreen and ZipLink
If you would invest 1,081 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 3,017 from holding Sweetgreen or generate 279.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.08% |
| Values | Daily Returns |
Sweetgreen vs. ZipLink
Performance |
| Timeline |
| Sweetgreen |
| ZipLink |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sweetgreen and ZipLink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and ZipLink
The main advantage of trading using opposite Sweetgreen and ZipLink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, ZipLink 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 ZipLink will offset losses from the drop in ZipLink's long position.| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
| ZipLink vs. Franklin Credit Management | ZipLink vs. Jacobs Solutions | ZipLink vs. Ameriprise Financial | ZipLink vs. Griffon |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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