Correlation Between National CineMedia and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and CAVA Group,, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and CAVA Group,.
Diversification Opportunities for National CineMedia and CAVA Group,
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and CAVA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and CAVA Group, go up and down completely randomly.
Pair Corralation between National CineMedia and CAVA Group,
Given the investment horizon of 90 days National CineMedia is expected to under-perform the CAVA Group,. In addition to that, National CineMedia is 1.17 times more volatile than CAVA Group,. It trades about -0.04 of its total potential returns per unit of risk. CAVA Group, is currently generating about 0.13 per unit of volatility. If you would invest 13,609 in CAVA Group, on August 26, 2024 and sell it today you would earn a total of 891.00 from holding CAVA Group, or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. CAVA Group,
Performance |
| Timeline |
| National CineMedia |
| CAVA Group, |
National CineMedia and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and CAVA Group,
The main advantage of trading using opposite National CineMedia and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
| CAVA Group, vs. Nomura Holdings ADR | CAVA Group, vs. Harmony Gold Mining | CAVA Group, vs. Sabra Healthcare REIT | CAVA Group, vs. Western Acquisition Ventures |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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