Correlation Between Sweetgreen and Solidion Technology

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

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

Diversification Opportunities for Sweetgreen and Solidion Technology

-0.27

Correlation Coefficient

Sweetgreen  Solidion Technology

Very good diversification

The 3 months correlation between Sweetgreen and Solidion is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Sweetgreen i.e., Sweetgreen and Solidion Technology go up and down completely randomly.

Pair Corralation between Sweetgreen and Solidion Technology

Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.41 times more return on investment than Solidion Technology. However, Sweetgreen is 2.43 times less risky than Solidion Technology. It trades about 0.08 of its potential returns per unit of risk. Solidion Technology is currently generating about 0.01 per unit of risk. If you would invest  945.00  in Sweetgreen on October 5, 2024 and sell it today you would earn a total of  2,264  from holding Sweetgreen or generate 239.58% return on investment over 90 days.

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

Sweetgreen  vs.  Solidion Technology

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Solidion Technology

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Solidion Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Solidion Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sweetgreen and Solidion Technology

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

The idea behind Sweetgreen and Solidion Technology 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.