Correlation Between Sweetgreen and Greenland Technologies

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

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

Diversification Opportunities for Sweetgreen and Greenland Technologies

0.31

Correlation Coefficient

Sweetgreen  Greenland Technologies

Weak diversification

The 3 months correlation between Sweetgreen and Greenland is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Greenland Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Technologies 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 Greenland Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Technologies has no effect on the direction of Sweetgreen i.e., Sweetgreen and Greenland Technologies go up and down completely randomly.

Pair Corralation between Sweetgreen and Greenland Technologies

If you would invest  3,458  in Sweetgreen on September 13, 2024 and sell it today you would earn a total of  425.00  from holding Sweetgreen or generate 12.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Sweetgreen  vs.  Greenland Technologies Holding

Sweetgreen

Risk-Adjusted Performance

5 of 100

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.

Greenland Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenland Technologies Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Greenland Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Sweetgreen and Greenland Technologies

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

The idea behind Sweetgreen and Greenland Technologies Holding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.