Correlation Between ALPHABET and Sweetgreen
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By analyzing existing cross correlation between ALPHABET INC and Sweetgreen, you can compare the effects of market volatilities on ALPHABET 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 ALPHABET with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALPHABET and Sweetgreen.
Diversification Opportunities for ALPHABET and Sweetgreen
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALPHABET and Sweetgreen is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ALPHABET INC and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and ALPHABET 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 ALPHABET INC 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 ALPHABET i.e., ALPHABET and Sweetgreen go up and down completely randomly.
Pair Corralation between ALPHABET and Sweetgreen
Assuming the 90 days trading horizon ALPHABET is expected to generate 2.04 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, ALPHABET INC is 3.1 times less risky than Sweetgreen. It trades about 0.17 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,851 in Sweetgreen on August 30, 2024 and sell it today you would earn a total of 392.00 from holding Sweetgreen or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALPHABET INC vs. Sweetgreen
Performance |
| Timeline |
| ALPHABET INC |
| Sweetgreen |
ALPHABET and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALPHABET and Sweetgreen
The main advantage of trading using opposite ALPHABET and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALPHABET 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.| ALPHABET vs. Topbuild Corp | ALPHABET vs. The Coca Cola | ALPHABET vs. Diageo PLC ADR | ALPHABET vs. Vita Coco |
| Sweetgreen vs. Chipotle Mexican Grill | Sweetgreen vs. Yum Brands | Sweetgreen vs. The Wendys Co | Sweetgreen vs. McDonalds |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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