Correlation Between CAVA Group, and Nxt ID
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Nxt ID 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 Nxt ID into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Nxt ID Inc, you can compare the effects of market volatilities on CAVA Group, and Nxt ID 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 Nxt ID. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Nxt ID.
Diversification Opportunities for CAVA Group, and Nxt ID
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAVA and Nxt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Nxt ID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxt ID Inc 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 Nxt ID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxt ID Inc has no effect on the direction of CAVA Group, i.e., CAVA Group, and Nxt ID go up and down completely randomly.
Pair Corralation between CAVA Group, and Nxt ID
If you would invest 12,547 in CAVA Group, on September 12, 2024 and sell it today you would earn a total of 293.00 from holding CAVA Group, or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CAVA Group, vs. Nxt ID Inc
Performance |
| Timeline |
| CAVA Group, |
| Nxt ID Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CAVA Group, and Nxt ID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Nxt ID
The main advantage of trading using opposite CAVA Group, and Nxt ID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Nxt ID 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 Nxt ID will offset losses from the drop in Nxt ID's long position.| CAVA Group, vs. Nathans Famous | CAVA Group, vs. Flanigans Enterprises | CAVA Group, vs. Good Times Restaurants | CAVA Group, vs. Auburn National Bancorporation |
| Nxt ID vs. Stagwell | Nxt ID vs. BOS Better Online | Nxt ID vs. CarsalesCom Ltd ADR | Nxt ID vs. Xunlei Ltd Adr |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets |