Correlation Between Vera Bradley and Sweetgreen

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vera Bradley 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 Vera Bradley and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vera Bradley and Sweetgreen, you can compare the effects of market volatilities on Vera Bradley 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 Vera Bradley with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vera Bradley and Sweetgreen.

Diversification Opportunities for Vera Bradley and Sweetgreen

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Vera and Sweetgreen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vera Bradley and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Vera Bradley 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 Vera Bradley 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 Vera Bradley i.e., Vera Bradley and Sweetgreen go up and down completely randomly.

Pair Corralation between Vera Bradley and Sweetgreen

Considering the 90-day investment horizon Vera Bradley is expected to generate 6.15 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Vera Bradley is 1.72 times less risky than Sweetgreen. It trades about 0.02 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  883.00  in Sweetgreen on September 13, 2024 and sell it today you would earn a total of  3,000  from holding Sweetgreen or generate 339.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Vera Bradley  vs.  Sweetgreen

 Performance 
       Timeline  
Vera Bradley 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Vera Bradley has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Vera Bradley is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Sweetgreen 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Sweetgreen are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Sweetgreen reported solid returns over the last few months and may actually be approaching a breakup point.

Vera Bradley and Sweetgreen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vera Bradley and Sweetgreen

The main advantage of trading using opposite Vera Bradley and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Bradley 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.
The idea behind Vera Bradley and Sweetgreen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments