Correlation Between Sweetgreen and 26441CBL8

Can any of the company-specific risk be diversified away by investing in both Sweetgreen and 26441CBL8 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 26441CBL8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sweetgreen and DUKE ENERGY P, you can compare the effects of market volatilities on Sweetgreen and 26441CBL8 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 26441CBL8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and 26441CBL8.

Diversification Opportunities for Sweetgreen and 26441CBL8

-0.78

Correlation Coefficient

Sweetgreen  26441CBL8

Pay attention - limited upside

The 3 months correlation between Sweetgreen and 26441CBL8 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and DUKE ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY P 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 26441CBL8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY P has no effect on the direction of Sweetgreen i.e., Sweetgreen and 26441CBL8 go up and down completely randomly.

Pair Corralation between Sweetgreen and 26441CBL8

Allowing for the 90-day total investment horizon Sweetgreen is expected to under-perform the 26441CBL8. In addition to that, Sweetgreen is 8.0 times more volatile than DUKE ENERGY P. It trades about -0.08 of its total potential returns per unit of risk. DUKE ENERGY P is currently generating about -0.04 per unit of volatility. If you would invest  8,578  in DUKE ENERGY P on December 25, 2024 and sell it today you would lose (118.00) from holding DUKE ENERGY P or give up 1.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Sweetgreen  vs.  DUKE ENERGY P

Sweetgreen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sweetgreen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

DUKE ENERGY P

Risk-Adjusted Performance

Very Weak

Over the last 90 days DUKE ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26441CBL8 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sweetgreen and 26441CBL8

The main advantage of trading using opposite Sweetgreen and 26441CBL8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, 26441CBL8 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 26441CBL8 will offset losses from the drop in 26441CBL8's long position.

The idea behind Sweetgreen and DUKE ENERGY P 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.