Correlation Between High Performance and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both High Performance and Sweetgreen 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 High Performance and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Performance Beverages and Sweetgreen, you can compare the effects of market volatilities on High Performance and Sweetgreen 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 High Performance with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and Sweetgreen.
Diversification Opportunities for High Performance and Sweetgreen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Sweetgreen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Performance Beverages and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and High Performance 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 High Performance Beverages are associated (or correlated) with Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of High Performance i.e., High Performance and Sweetgreen go up and down completely randomly.
Pair Corralation between High Performance and Sweetgreen
Given the investment horizon of 90 days High Performance Beverages is expected to generate 72.49 times more return on investment than Sweetgreen. However, High Performance is 72.49 times more volatile than Sweetgreen. It trades about 0.37 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.08 per unit of risk. If you would invest 0.01 in High Performance Beverages on September 12, 2024 and sell it today you would lose (0.01) from holding High Performance Beverages or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
High Performance Beverages vs. Sweetgreen
Performance |
| Timeline |
| High Performance Bev |
| Sweetgreen |
High Performance and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Performance and Sweetgreen
The main advantage of trading using opposite High Performance and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| High Performance vs. V Group | High Performance vs. Fbec Worldwide | High Performance vs. Hiru Corporation | High Performance vs. Alkame Holdings |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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