Correlation Between CAVA Group, and SIMON
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By analyzing existing cross correlation between CAVA Group, and SIMON PPTY GROUP, you can compare the effects of market volatilities on CAVA Group, and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and SIMON.
Diversification Opportunities for CAVA Group, and SIMON
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CAVA and SIMON is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of CAVA Group, i.e., CAVA Group, and SIMON go up and down completely randomly.
Pair Corralation between CAVA Group, and SIMON
Given the investment horizon of 90 days CAVA Group, is expected to under-perform the SIMON. In addition to that, CAVA Group, is 25.55 times more volatile than SIMON PPTY GROUP. It trades about -0.14 of its total potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.03 per unit of volatility. If you would invest 9,728 in SIMON PPTY GROUP on November 27, 2024 and sell it today you would earn a total of 21.00 from holding SIMON PPTY GROUP or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
CAVA Group, vs. SIMON PPTY GROUP
Performance |
| Timeline |
| CAVA Group, |
| SIMON PPTY GROUP |
CAVA Group, and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and SIMON
The main advantage of trading using opposite CAVA Group, and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| CAVA Group, vs. AG Mortgage Investment | CAVA Group, vs. Universal Technical Institute | CAVA Group, vs. Western Asset Investment | CAVA Group, vs. Skillful Craftsman Education |
| SIMON vs. KNOT Offshore Partners | SIMON vs. Jutal Offshore Oil | SIMON vs. Alto Neuroscience, | SIMON vs. NETGEAR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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