Correlation Between 42225UAD6 and Sweetgreen
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By analyzing existing cross correlation between HEALTHCARE TR AMER and Sweetgreen, you can compare the effects of market volatilities on 42225UAD6 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 42225UAD6 with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of 42225UAD6 and Sweetgreen.
Diversification Opportunities for 42225UAD6 and Sweetgreen
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 42225UAD6 and Sweetgreen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE TR AMER and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and 42225UAD6 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 HEALTHCARE TR AMER 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 42225UAD6 i.e., 42225UAD6 and Sweetgreen go up and down completely randomly.
Pair Corralation between 42225UAD6 and Sweetgreen
Assuming the 90 days trading horizon HEALTHCARE TR AMER is expected to under-perform the Sweetgreen. But the bond apears to be less risky and, when comparing its historical volatility, HEALTHCARE TR AMER is 9.41 times less risky than Sweetgreen. The bond trades about -0.24 of its potential returns per unit of risk. The Sweetgreen is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,610 in Sweetgreen on September 1, 2024 and sell it today you would earn a total of 488.00 from holding Sweetgreen or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
HEALTHCARE TR AMER vs. Sweetgreen
Performance |
| Timeline |
| HEALTHCARE TR AMER |
| Sweetgreen |
42225UAD6 and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 42225UAD6 and Sweetgreen
The main advantage of trading using opposite 42225UAD6 and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 42225UAD6 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.| 42225UAD6 vs. Boyd Gaming | 42225UAD6 vs. Algoma Steel Group | 42225UAD6 vs. GEN Restaurant Group, | 42225UAD6 vs. Grupo Simec SAB |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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