Correlation Between Nuvve Holding and BurgerFi International

Can any of the company-specific risk be diversified away by investing in both Nuvve Holding and BurgerFi International 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 Nuvve Holding and BurgerFi International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuvve Holding Corp and BurgerFi International LLC, you can compare the effects of market volatilities on Nuvve Holding and BurgerFi International 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 Nuvve Holding with a short position of BurgerFi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvve Holding and BurgerFi International.

Diversification Opportunities for Nuvve Holding and BurgerFi International

0.11

Correlation Coefficient

Nuvve Holding  BurgerFi International

Average diversification

The 3 months correlation between Nuvve and BurgerFi is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nuvve Holding Corp and BurgerFi International LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurgerFi International and Nuvve Holding 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 Nuvve Holding Corp are associated (or correlated) with BurgerFi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurgerFi International has no effect on the direction of Nuvve Holding i.e., Nuvve Holding and BurgerFi International go up and down completely randomly.

Pair Corralation between Nuvve Holding and BurgerFi International

If you would invest  2.45  in Nuvve Holding Corp on September 28, 2024 and sell it today you would lose (0.93) from holding Nuvve Holding Corp or give up 37.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Nuvve Holding Corp  vs.  BurgerFi International LLC

Nuvve Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuvve Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal technical and fundamental indicators, Nuvve Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

BurgerFi International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BurgerFi International LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, BurgerFi International is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Nuvve Holding and BurgerFi International

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

The idea behind Nuvve Holding Corp and BurgerFi International LLC 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.