Correlation Between Yuexiu Transport and CAVA Group,

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

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

Diversification Opportunities for Yuexiu Transport and CAVA Group,

0.13

Correlation Coefficient

Yuexiu Transport  CAVA Group,

Average diversification

The 3 months correlation between Yuexiu and CAVA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and CAVA Group, go up and down completely randomly.

Pair Corralation between Yuexiu Transport and CAVA Group,

Assuming the 90 days horizon Yuexiu Transport is expected to generate 11.07 times less return on investment than CAVA Group,. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 18.0 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 October 3, 2024 and sell it today you would earn a total of  11,152  from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	78.79%
Values	Daily Returns

Yuexiu Transport Infrastructur  vs.  CAVA Group,

Yuexiu Transport Inf

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Yuexiu Transport reported solid returns over the last few months and may actually be approaching a breakup point.

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Yuexiu Transport and CAVA Group,

The main advantage of trading using opposite Yuexiu Transport and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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 Yuexiu Transport Infrastructure 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.