Correlation Between Sweetgreen and Ballys Corp

Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Ballys Corp 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 Sweetgreen and Ballys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sweetgreen and Ballys Corp, you can compare the effects of market volatilities on Sweetgreen and Ballys Corp 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 Sweetgreen with a short position of Ballys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Ballys Corp.

Diversification Opportunities for Sweetgreen and Ballys Corp

-0.06

Correlation Coefficient

Sweetgreen  Ballys Corp

Good diversification

The 3 months correlation between Sweetgreen and Ballys is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Ballys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballys Corp and Sweetgreen 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 Sweetgreen are associated (or correlated) with Ballys Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballys Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Ballys Corp go up and down completely randomly.

Pair Corralation between Sweetgreen and Ballys Corp

Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Ballys Corp. In addition to that, Sweetgreen is 14.87 times more volatile than Ballys Corp. It trades about -0.17 of its total potential returns per unit of risk. Ballys Corp is currently generating about 0.29 per unit of volatility. If you would invest  1,772  in Ballys Corp on October 8, 2024 and sell it today you would earn a total of  24.00  from holding Ballys Corp or generate 1.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sweetgreen  vs.  Ballys Corp

Sweetgreen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sweetgreen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Ballys Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ballys Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Ballys Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sweetgreen and Ballys Corp

The main advantage of trading using opposite Sweetgreen and Ballys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Ballys Corp 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 Ballys Corp will offset losses from the drop in Ballys Corp's long position.

The idea behind Sweetgreen and Ballys Corp 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..