Correlation Between Capri Holdings and Hengli Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Capri Holdings and Hengli Industrial Development, you can compare the effects of market volatilities on Capri Holdings and Hengli Industrial 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 Capri Holdings with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Hengli Industrial.
Diversification Opportunities for Capri Holdings and Hengli Industrial
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capri and Hengli is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Capri Holdings 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 Capri Holdings are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Capri Holdings i.e., Capri Holdings and Hengli Industrial go up and down completely randomly.
Pair Corralation between Capri Holdings and Hengli Industrial
Given the investment horizon of 90 days Capri Holdings is expected to generate 1.35 times less return on investment than Hengli Industrial. But when comparing it to its historical volatility, Capri Holdings is 1.23 times less risky than Hengli Industrial. It trades about 0.26 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Hengli Industrial Development on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Hengli Industrial Development or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capri Holdings vs. Hengli Industrial Development
Performance |
| Timeline |
| Capri Holdings |
| Hengli Industrial |
Capri Holdings and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Hengli Industrial
The main advantage of trading using opposite Capri Holdings and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Hengli Industrial vs. Shenzhen Centralcon Investment | Hengli Industrial vs. Guangzhou Zhujiang Brewery | Hengli Industrial vs. Beijing Mainstreets Investment | Hengli Industrial vs. Tongyu Communication |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |