Correlation Between Greencity Acquisition and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Greencity Acquisition 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 Greencity Acquisition and CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencity Acquisition Corp and CAVA Group,, you can compare the effects of market volatilities on Greencity Acquisition 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 Greencity Acquisition with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencity Acquisition and CAVA Group,.
Diversification Opportunities for Greencity Acquisition and CAVA Group,
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greencity and CAVA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Greencity Acquisition Corp and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Greencity Acquisition 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 Greencity Acquisition Corp 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 Greencity Acquisition i.e., Greencity Acquisition and CAVA Group, go up and down completely randomly.
Pair Corralation between Greencity Acquisition and CAVA Group,
Assuming the 90 days horizon Greencity Acquisition is expected to generate 54.35 times less return on investment than CAVA Group,. But when comparing it to its historical volatility, Greencity Acquisition Corp is 79.51 times less risky than CAVA Group,. It trades about 0.09 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in CAVA Group, on September 5, 2024 and sell it today you would earn a total of 14,184 from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.75% |
| Values | Daily Returns |
Greencity Acquisition Corp vs. CAVA Group,
Performance |
| Timeline |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CAVA Group, |
Greencity Acquisition and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencity Acquisition and CAVA Group,
The main advantage of trading using opposite Greencity Acquisition and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencity Acquisition 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.| Greencity Acquisition vs. Vita Coco | Greencity Acquisition vs. Delta Air Lines | Greencity Acquisition vs. Diageo PLC ADR | Greencity Acquisition vs. Monster Beverage Corp |
| CAVA Group, vs. Weyco Group | CAVA Group, vs. Cardinal Health | CAVA Group, vs. MagnaChip Semiconductor | CAVA Group, vs. Kulicke and Soffa |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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