Correlation Between Sweetgreen and Expedia
Can any of the company-specific risk be diversified away by investing in both Sweetgreen and Expedia 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 Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweetgreen and Expedia Group, you can compare the effects of market volatilities on Sweetgreen and Expedia 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 Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweetgreen and Expedia.
Diversification Opportunities for Sweetgreen and Expedia
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sweetgreen and Expedia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sweetgreen and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of Sweetgreen i.e., Sweetgreen and Expedia go up and down completely randomly.
Pair Corralation between Sweetgreen and Expedia
Allowing for the 90-day total investment horizon Sweetgreen is expected to generate 2.57 times more return on investment than Expedia. However, Sweetgreen is 2.57 times more volatile than Expedia Group. It trades about 0.14 of its potential returns per unit of risk. Expedia Group is currently generating about -0.05 per unit of risk. If you would invest 2,160 in Sweetgreen on March 14, 2024 and sell it today you would earn a total of 1,204 from holding Sweetgreen or generate 55.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sweetgreen vs. Expedia Group
Performance |
Timeline |
Sweetgreen |
Expedia Group |
Sweetgreen and Expedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sweetgreen and Expedia
The main advantage of trading using opposite Sweetgreen and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweetgreen position performs unexpectedly, Expedia 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 Expedia will offset losses from the drop in Expedia's long position.Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
Expedia vs. Airbnb Inc | Expedia vs. TripAdvisor | Expedia vs. Royal Caribbean Cruises | Expedia vs. Norwegian Cruise Line |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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