Correlation Between CAVA Group, and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Grupo Aeroportuario 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 CAVA Group, and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Grupo Aeroportuario del, you can compare the effects of market volatilities on CAVA Group, and Grupo Aeroportuario 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 CAVA Group, with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Grupo Aeroportuario.
Diversification Opportunities for CAVA Group, and Grupo Aeroportuario
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CAVA and Grupo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del and CAVA Group, 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 CAVA Group, are associated (or correlated) with Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of CAVA Group, i.e., CAVA Group, and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between CAVA Group, and Grupo Aeroportuario
Given the investment horizon of 90 days CAVA Group, is expected to generate 22.1 times more return on investment than Grupo Aeroportuario. However, CAVA Group, is 22.1 times more volatile than Grupo Aeroportuario del. It trades about 0.06 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.02 per unit of risk. If you would invest 0.00 in CAVA Group, on September 12, 2024 and sell it today you would earn a total of 12,840 from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.16% |
| Values | Daily Returns |
CAVA Group, vs. Grupo Aeroportuario del
Performance |
| Timeline |
| CAVA Group, |
| Grupo Aeroportuario del |
CAVA Group, and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Grupo Aeroportuario
The main advantage of trading using opposite CAVA Group, and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| CAVA Group, vs. Grupo Aeroportuario del | CAVA Group, vs. Eastern Co | CAVA Group, vs. HF Sinclair Corp | CAVA Group, vs. Finnair Oyj |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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