Correlation Between Sweetgreen and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and ZOOZ Power 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 ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and ZOOZ Power Ltd, you can compare the effects of market volatilities on Sweetgreen and ZOOZ Power 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 ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and ZOOZ Power.
Diversification Opportunities for Sweetgreen and ZOOZ Power
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sweetgreen and ZOOZ is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power 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 ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Sweetgreen i.e., Sweetgreen and ZOOZ Power go up and down completely randomly.
Pair Corralation between Sweetgreen and ZOOZ Power
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 1.97 times less return on investment than ZOOZ Power. But when comparing it to its historical volatility, Sweetgreen is 5.26 times less risky than ZOOZ Power. It trades about 0.19 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.00 in ZOOZ Power Ltd on August 25, 2024 and sell it today you would lose (1.00) from holding ZOOZ Power Ltd or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sweetgreen vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Sweetgreen |
| ZOOZ Power |
Sweetgreen and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweetgreen and ZOOZ Power
The main advantage of trading using opposite Sweetgreen and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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