Correlation Between CAVA Group, and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Mativ Holdings 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 Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Mativ Holdings, you can compare the effects of market volatilities on CAVA Group, and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Mativ Holdings.
Diversification Opportunities for CAVA Group, and Mativ Holdings
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAVA and Mativ is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of CAVA Group, i.e., CAVA Group, and Mativ Holdings go up and down completely randomly.
Pair Corralation between CAVA Group, and Mativ Holdings
Given the investment horizon of 90 days CAVA Group, is expected to generate 0.44 times more return on investment than Mativ Holdings. However, CAVA Group, is 2.28 times less risky than Mativ Holdings. It trades about 0.14 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.11 per unit of risk. If you would invest 13,212 in CAVA Group, on September 3, 2024 and sell it today you would earn a total of 878.00 from holding CAVA Group, or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAVA Group, vs. Mativ Holdings
Performance |
| Timeline |
| CAVA Group, |
| Mativ Holdings |
CAVA Group, and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Mativ Holdings
The main advantage of trading using opposite CAVA Group, and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| CAVA Group, vs. Dominos Pizza | CAVA Group, vs. United Guardian | CAVA Group, vs. Yum Brands | CAVA Group, vs. Hooker Furniture |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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