Correlation Between CAVA Group, and FG Annuities
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and FG Annuities 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 FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and FG Annuities Life, you can compare the effects of market volatilities on CAVA Group, and FG Annuities 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 FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and FG Annuities.
Diversification Opportunities for CAVA Group, and FG Annuities
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAVA and FGN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life 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 FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of CAVA Group, i.e., CAVA Group, and FG Annuities go up and down completely randomly.
Pair Corralation between CAVA Group, and FG Annuities
Given the investment horizon of 90 days CAVA Group, is expected to generate 134.07 times more return on investment than FG Annuities. However, CAVA Group, is 134.07 times more volatile than FG Annuities Life. It trades about 0.06 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.16 per unit of risk. If you would invest 0.00 in CAVA Group, on September 3, 2024 and sell it today you would earn a total of 14,090 from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.22% |
| Values | Daily Returns |
CAVA Group, vs. FG Annuities Life
Performance |
| Timeline |
| CAVA Group, |
| FG Annuities Life |
CAVA Group, and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and FG Annuities
The main advantage of trading using opposite CAVA Group, and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| CAVA Group, vs. Dominos Pizza | CAVA Group, vs. United Guardian | CAVA Group, vs. Yum Brands | CAVA Group, vs. Hooker Furniture |
| FG Annuities vs. Sphere Entertainment Co | FG Annuities vs. Zhihu Inc ADR | FG Annuities vs. National CineMedia | FG Annuities vs. Sealed Air |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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