Correlation Between Victorias Secret and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Victorias Secret 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 Victorias Secret and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victorias Secret Co and Sweetgreen, you can compare the effects of market volatilities on Victorias Secret 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 Victorias Secret with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Sweetgreen.
Diversification Opportunities for Victorias Secret and Sweetgreen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victorias and Sweetgreen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Victorias Secret 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 Victorias Secret Co 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 Victorias Secret i.e., Victorias Secret and Sweetgreen go up and down completely randomly.
Pair Corralation between Victorias Secret and Sweetgreen
Given the investment horizon of 90 days Victorias Secret is expected to generate 3.7 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Victorias Secret Co is 1.21 times less risky than Sweetgreen. It trades about 0.03 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victorias Secret Co vs. Sweetgreen
Performance |
| Timeline |
| Victorias Secret |
| Sweetgreen |
Victorias Secret and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and Sweetgreen
The main advantage of trading using opposite Victorias Secret and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret 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.| Victorias Secret vs. Capri Holdings | Victorias Secret vs. Movado Group | Victorias Secret vs. Tapestry | Victorias Secret vs. Brilliant Earth Group |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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