Correlation Between Sweetgreen and Astoria Financial

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

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

Diversification Opportunities for Sweetgreen and Astoria Financial

0.0

Correlation Coefficient

Sweetgreen  Astoria Financial

Pay attention - limited upside

The 3 months correlation between Sweetgreen and Astoria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Astoria Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Financial Corp 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 Astoria Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Financial Corp has no effect on the direction of Sweetgreen i.e., Sweetgreen and Astoria Financial go up and down completely randomly.

Pair Corralation between Sweetgreen and Astoria Financial

If you would invest (100.00) in Astoria Financial Corp on January 29, 2024 and sell it today you would earn a total of  100.00  from holding Astoria Financial Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sweetgreen  vs.  Astoria Financial Corp

Sweetgreen

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sweetgreen are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Sweetgreen reported solid returns over the last few months and may actually be approaching a breakup point.

Astoria Financial Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astoria Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Astoria Financial is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sweetgreen and Astoria Financial

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

The idea behind Sweetgreen and Astoria Financial Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.