Correlation Between Zedge and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Zedge 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 Zedge and Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedge Inc and Sweetgreen, you can compare the effects of market volatilities on Zedge 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 Zedge with a short position of Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and Sweetgreen.
Diversification Opportunities for Zedge and Sweetgreen
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zedge and Sweetgreen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen and Zedge 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 Zedge 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 Zedge i.e., Zedge and Sweetgreen go up and down completely randomly.
Pair Corralation between Zedge and Sweetgreen
Given the investment horizon of 90 days Zedge is expected to generate 2.35 times less return on investment than Sweetgreen. In addition to that, Zedge is 1.06 times more volatile than Sweetgreen. It trades about 0.05 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.13 per unit of volatility. If you would invest 1,031 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 2,892 from holding Sweetgreen or generate 280.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedge Inc vs. Sweetgreen
Performance |
| Timeline |
| Zedge Inc |
| Sweetgreen |
Zedge and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedge and Sweetgreen
The main advantage of trading using opposite Zedge and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge 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 Zedge Inc 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.| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |