Correlation Between CAVA Group, and Vera Bradley
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Vera Bradley 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 Vera Bradley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Vera Bradley, you can compare the effects of market volatilities on CAVA Group, and Vera Bradley 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 Vera Bradley. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Vera Bradley.
Diversification Opportunities for CAVA Group, and Vera Bradley
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAVA and Vera is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Vera Bradley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vera Bradley 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 Vera Bradley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vera Bradley has no effect on the direction of CAVA Group, i.e., CAVA Group, and Vera Bradley go up and down completely randomly.
Pair Corralation between CAVA Group, and Vera Bradley
Given the investment horizon of 90 days CAVA Group, is expected to generate 1.26 times more return on investment than Vera Bradley. However, CAVA Group, is 1.26 times more volatile than Vera Bradley. It trades about 0.06 of its potential returns per unit of risk. Vera Bradley is currently generating about -0.03 per unit of risk. If you would invest 4,378 in CAVA Group, on December 4, 2024 and sell it today you would earn a total of 4,387 from holding CAVA Group, or generate 100.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.02% |
| Values | Daily Returns |
CAVA Group, vs. Vera Bradley
Performance |
| Timeline |
| CAVA Group, |
| Vera Bradley |
CAVA Group, and Vera Bradley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Vera Bradley
The main advantage of trading using opposite CAVA Group, and Vera Bradley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Vera Bradley 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 Vera Bradley will offset losses from the drop in Vera Bradley's long position.| CAVA Group, vs. Sphere 3D Corp | CAVA Group, vs. Cementos Pacasmayo SAA | CAVA Group, vs. Highway Holdings Limited | CAVA Group, vs. Everus Construction Group |
| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |