Correlation Between CAVA Group, and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Sweetgreen 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 Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Sweetgreen, you can compare the effects of market volatilities on CAVA Group, and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Sweetgreen.
Diversification Opportunities for CAVA Group, and Sweetgreen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAVA and Sweetgreen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of CAVA Group, i.e., CAVA Group, and Sweetgreen go up and down completely randomly.
Pair Corralation between CAVA Group, and Sweetgreen
Given the investment horizon of 90 days CAVA Group, is expected to generate 11.11 times more return on investment than Sweetgreen. However, CAVA Group, is 11.11 times more volatile than Sweetgreen. It trades about 0.06 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.07 per unit of risk. If you would invest 0.00 in CAVA Group, on August 26, 2024 and sell it today you would earn a total of 14,500 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 | 73.64% |
| Values | Daily Returns |
CAVA Group, vs. Sweetgreen
Performance |
| Timeline |
| CAVA Group, |
| Sweetgreen |
CAVA Group, and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Sweetgreen
The main advantage of trading using opposite CAVA Group, and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| CAVA Group, vs. Western Acquisition Ventures | CAVA Group, vs. National CineMedia | CAVA Group, vs. Playtika Holding Corp | CAVA Group, vs. Tenaris SA ADR |
| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |