Correlation Between Live Ventures and CAVA Group,

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

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

Diversification Opportunities for Live Ventures and CAVA Group,

0.14

Correlation Coefficient

Live Ventures  CAVA Group,

Average diversification

The 3 months correlation between Live and CAVA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, and Live Ventures 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 Live Ventures 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 Live Ventures i.e., Live Ventures and CAVA Group, go up and down completely randomly.

Pair Corralation between Live Ventures and CAVA Group,

Given the investment horizon of 90 days Live Ventures is expected to generate 1.18 times more return on investment than CAVA Group,. However, Live Ventures is 1.18 times more volatile than CAVA Group,. It trades about -0.08 of its potential returns per unit of risk. CAVA Group, is currently generating about -0.29 per unit of risk. If you would invest  1,016  in Live Ventures on October 15, 2024 and sell it today you would lose (46.00) from holding Live Ventures or give up 4.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Live Ventures  vs.  CAVA Group,

Live Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Live Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 unfluctuating 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.

Pair Trading with Live Ventures and CAVA Group,

The main advantage of trading using opposite Live Ventures and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures 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 Live Ventures 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.