Correlation Between CAVA Group, and Mural Oncology
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Mural Oncology 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 Mural Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Mural Oncology plc, you can compare the effects of market volatilities on CAVA Group, and Mural Oncology 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 Mural Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Mural Oncology.
Diversification Opportunities for CAVA Group, and Mural Oncology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAVA and Mural is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Mural Oncology plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mural Oncology plc 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 Mural Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mural Oncology plc has no effect on the direction of CAVA Group, i.e., CAVA Group, and Mural Oncology go up and down completely randomly.
Pair Corralation between CAVA Group, and Mural Oncology
Given the investment horizon of 90 days CAVA Group, is expected to generate 1.06 times more return on investment than Mural Oncology. However, CAVA Group, is 1.06 times more volatile than Mural Oncology plc. It trades about 0.13 of its potential returns per unit of risk. Mural Oncology plc is currently generating about 0.07 per unit of risk. If you would invest 8,834 in CAVA Group, on September 2, 2024 and sell it today you would earn a total of 5,256 from holding CAVA Group, or generate 59.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAVA Group, vs. Mural Oncology plc
Performance |
| Timeline |
| CAVA Group, |
| Mural Oncology plc |
CAVA Group, and Mural Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Mural Oncology
The main advantage of trading using opposite CAVA Group, and Mural Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Mural Oncology 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 Mural Oncology will offset losses from the drop in Mural Oncology's long position.| CAVA Group, vs. Tarsus Pharmaceuticals | CAVA Group, vs. Lipocine | CAVA Group, vs. Ardelyx | CAVA Group, vs. Asure Software |
| Mural Oncology vs. Tff Pharmaceuticals | Mural Oncology vs. Eliem Therapeutics | Mural Oncology vs. Inhibrx | Mural Oncology vs. Enliven Therapeutics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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