Correlation Between Anterix and CAVA Group,

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anterix 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 Anterix and CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and CAVA Group,, you can compare the effects of market volatilities on Anterix 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 Anterix with a short position of CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and CAVA Group,.

Diversification Opportunities for Anterix and CAVA Group,

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Anterix and CAVA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Anterix 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 Anterix 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 Anterix i.e., Anterix and CAVA Group, go up and down completely randomly.

Pair Corralation between Anterix and CAVA Group,

Given the investment horizon of 90 days Anterix is expected to under-perform the CAVA Group,. But the stock apears to be less risky and, when comparing its historical volatility, Anterix is 1.11 times less risky than CAVA Group,. The stock trades about -0.14 of its potential returns per unit of risk. The CAVA Group, is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  12,522  in CAVA Group, on September 19, 2024 and sell it today you would lose (185.00) from holding CAVA Group, or give up 1.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Anterix  vs.  CAVA Group,

 Performance 
       Timeline  
Anterix 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
CAVA Group, 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CAVA Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CAVA Group, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Anterix and CAVA Group, Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anterix and CAVA Group,

The main advantage of trading using opposite Anterix and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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 Anterix 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.
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world