Correlation Between Fluent and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Fluent and CAVA Group, 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 Fluent and CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and CAVA Group,, you can compare the effects of market volatilities on Fluent and CAVA Group, 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 Fluent with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and CAVA Group,.
Diversification Opportunities for Fluent and CAVA Group,
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fluent and CAVA is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Fluent 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 Fluent Inc are associated (or correlated) with CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Fluent i.e., Fluent and CAVA Group, go up and down completely randomly.
Pair Corralation between Fluent and CAVA Group,
Given the investment horizon of 90 days Fluent Inc is expected to generate 1.27 times more return on investment than CAVA Group,. However, Fluent is 1.27 times more volatile than CAVA Group,. It trades about -0.05 of its potential returns per unit of risk. CAVA Group, is currently generating about -0.18 per unit of risk. If you would invest 296.00 in Fluent Inc on September 12, 2024 and sell it today you would lose (20.00) from holding Fluent Inc or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fluent Inc vs. CAVA Group,
Performance |
| Timeline |
| Fluent Inc |
| CAVA Group, |
Fluent and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and CAVA Group,
The main advantage of trading using opposite Fluent and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| CAVA Group, vs. Grupo Aeroportuario del | CAVA Group, vs. Eastern Co | CAVA Group, vs. HF Sinclair Corp | CAVA Group, vs. Finnair Oyj |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |