Correlation Between Sweetgreen and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Sellas Life 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 Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Sellas Life Sciences, you can compare the effects of market volatilities on Sweetgreen and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Sellas Life.
Diversification Opportunities for Sweetgreen and Sellas Life
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Sellas is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Sweetgreen i.e., Sweetgreen and Sellas Life go up and down completely randomly.
Pair Corralation between Sweetgreen and Sellas Life
Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the Sellas Life. In addition to that, Sweetgreen is 1.24 times more volatile than Sellas Life Sciences. It trades about -0.35 of its total potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.24 per unit of volatility. If you would invest 148.00 in Sellas Life Sciences on December 5, 2024 and sell it today you would lose (27.00) from holding Sellas Life Sciences or give up 18.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sweetgreen vs. Sellas Life Sciences
Performance |
Timeline |
Sweetgreen |
Sellas Life Sciences |
Sweetgreen and Sellas Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sweetgreen and Sellas Life
The main advantage of trading using opposite Sweetgreen and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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