Correlation Between CAVA Group, and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Victorias Secret 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 Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAVA Group, and Victorias Secret Co, you can compare the effects of market volatilities on CAVA Group, and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Victorias Secret.
Diversification Opportunities for CAVA Group, and Victorias Secret
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CAVA and Victorias is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of CAVA Group, i.e., CAVA Group, and Victorias Secret go up and down completely randomly.
Pair Corralation between CAVA Group, and Victorias Secret
Given the investment horizon of 90 days CAVA Group, is expected to generate 13.19 times more return on investment than Victorias Secret. However, CAVA Group, is 13.19 times more volatile than Victorias Secret Co. It trades about 0.06 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.03 per unit of risk. If you would invest 0.00 in CAVA Group, on September 13, 2024 and sell it today you would earn a total of 12,759 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 | 76.32% |
| Values | Daily Returns |
CAVA Group, vs. Victorias Secret Co
Performance |
| Timeline |
| CAVA Group, |
| Victorias Secret |
CAVA Group, and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAVA Group, and Victorias Secret
The main advantage of trading using opposite CAVA Group, and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.The idea behind CAVA Group, and Victorias Secret Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Victorias Secret vs. Capri Holdings | Victorias Secret vs. Movado Group | Victorias Secret vs. Tapestry | Victorias Secret vs. Brilliant Earth Group |
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
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |