Correlation Between BHCCN and CAVA Group,
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By analyzing existing cross correlation between BHCCN 11 30 SEP 28 and CAVA Group,, you can compare the effects of market volatilities on BHCCN 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 BHCCN with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHCCN and CAVA Group,.
Diversification Opportunities for BHCCN and CAVA Group,
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BHCCN and CAVA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BHCCN 11 30 SEP 28 and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and BHCCN 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 BHCCN 11 30 SEP 28 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 BHCCN i.e., BHCCN and CAVA Group, go up and down completely randomly.
Pair Corralation between BHCCN and CAVA Group,
Assuming the 90 days trading horizon BHCCN 11 30 SEP 28 is expected to under-perform the CAVA Group,. In addition to that, BHCCN is 2.21 times more volatile than CAVA Group,. It trades about -0.2 of its total potential returns per unit of risk. CAVA Group, is currently generating about 0.14 per unit of volatility. If you would invest 13,212 in CAVA Group, on September 5, 2024 and sell it today you would earn a total of 972.00 from holding CAVA Group, or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
BHCCN 11 30 SEP 28 vs. CAVA Group,
Performance |
| Timeline |
| BHCCN 11 30 |
| CAVA Group, |
BHCCN and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BHCCN and CAVA Group,
The main advantage of trading using opposite BHCCN and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHCCN 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.The idea behind BHCCN 11 30 SEP 28 and CAVA Group, 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.| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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