Correlation Between Occidental and Sweetgreen
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By analyzing existing cross correlation between Occidental Petroleum 43 and Sweetgreen, you can compare the effects of market volatilities on Occidental 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 Occidental with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental and Sweetgreen.
Diversification Opportunities for Occidental and Sweetgreen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Occidental and Sweetgreen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum 43 and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Occidental 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 Occidental Petroleum 43 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 Occidental i.e., Occidental and Sweetgreen go up and down completely randomly.
Pair Corralation between Occidental and Sweetgreen
Assuming the 90 days trading horizon Occidental Petroleum 43 is expected to generate 0.35 times more return on investment than Sweetgreen. However, Occidental Petroleum 43 is 2.84 times less risky than Sweetgreen. It trades about 0.27 of its potential returns per unit of risk. Sweetgreen is currently generating about -0.04 per unit of risk. If you would invest 8,202 in Occidental Petroleum 43 on September 12, 2024 and sell it today you would earn a total of 570.00 from holding Occidental Petroleum 43 or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Occidental Petroleum 43 vs. Sweetgreen
Performance |
| Timeline |
| Occidental Petroleum |
| Sweetgreen |
Occidental and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental and Sweetgreen
The main advantage of trading using opposite Occidental and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental 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.| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Applied Blockchain | Occidental vs. BigBearai 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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