Correlation Between Sweetgreen and Concorde Gaming

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

By analyzing existing cross correlation between Sweetgreen and Concorde Gaming, you can compare the effects of market volatilities on Sweetgreen and Concorde Gaming 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 Concorde Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Concorde Gaming.

Diversification Opportunities for Sweetgreen and Concorde Gaming

0.0

Correlation Coefficient

Sweetgreen  Concorde Gaming

Pay attention - limited upside

The 3 months correlation between Sweetgreen and Concorde is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Concorde Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concorde Gaming 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 Concorde Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concorde Gaming has no effect on the direction of Sweetgreen i.e., Sweetgreen and Concorde Gaming go up and down completely randomly.

Pair Corralation between Sweetgreen and Concorde Gaming

If you would invest  1,047  in Sweetgreen on October 23, 2024 and sell it today you would earn a total of  2,303  from holding Sweetgreen or generate 219.96% return on investment over 90 days.

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

Sweetgreen  vs.  Concorde Gaming

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 nearly stable technical and fundamental indicators, Sweetgreen is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Concorde Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concorde Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Concorde Gaming is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sweetgreen and Concorde Gaming

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

The idea behind Sweetgreen and Concorde Gaming 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.