Correlation Between Sweetgreen and Veea
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Veea 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 Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Veea Inc, you can compare the effects of market volatilities on Sweetgreen and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Veea.
Diversification Opportunities for Sweetgreen and Veea
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sweetgreen and Veea is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Sweetgreen i.e., Sweetgreen and Veea go up and down completely randomly.
Pair Corralation between Sweetgreen and Veea
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 0.28 times more return on investment than Veea. However, Sweetgreen is 3.59 times less risky than Veea. It trades about 0.04 of its potential returns per unit of risk. Veea Inc is currently generating about -0.01 per unit of risk. If you would invest 3,014 in Sweetgreen on September 26, 2024 and sell it today you would earn a total of 317.00 from holding Sweetgreen or generate 10.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 58.4% |
Values | Daily Returns |
Sweetgreen vs. Veea Inc
Performance |
Timeline |
Sweetgreen |
Veea Inc |
Sweetgreen and Veea Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sweetgreen and Veea
The main advantage of trading using opposite Sweetgreen and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's long position.Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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