Correlation Between CAVA Group, and Freedom Internet

Can any of the company-specific risk be diversified away by investing in both CAVA Group, and Freedom Internet 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 CAVA Group, and Freedom Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CAVA Group, and Freedom Internet Group, you can compare the effects of market volatilities on CAVA Group, and Freedom Internet 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 CAVA Group, with a short position of Freedom Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAVA Group, and Freedom Internet.

Diversification Opportunities for CAVA Group, and Freedom Internet

0.0

Correlation Coefficient

CAVA Group,  Freedom Internet

Pay attention - limited upside

The 3 months correlation between CAVA and Freedom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAVA Group, and Freedom Internet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Internet and CAVA Group, 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 CAVA Group, are associated (or correlated) with Freedom Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Internet has no effect on the direction of CAVA Group, i.e., CAVA Group, and Freedom Internet go up and down completely randomly.

Pair Corralation between CAVA Group, and Freedom Internet

If you would invest  0.00  in CAVA Group, on October 23, 2024 and sell it today you would earn a total of  11,823  from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.38%
Values	Daily Returns

CAVA Group,  vs.  Freedom Internet Group

CAVA Group,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CAVA Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Freedom Internet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freedom Internet Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Freedom Internet is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CAVA Group, and Freedom Internet

The main advantage of trading using opposite CAVA Group, and Freedom Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAVA Group, position performs unexpectedly, Freedom Internet 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 Freedom Internet will offset losses from the drop in Freedom Internet's long position.

The idea behind CAVA Group, and Freedom Internet 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.