Correlation Between Capri Holdings and Guangzhou Zhujiang
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By analyzing existing cross correlation between Capri Holdings and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Capri Holdings and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Guangzhou Zhujiang.
Diversification Opportunities for Capri Holdings and Guangzhou Zhujiang
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capri and Guangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Capri Holdings i.e., Capri Holdings and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Capri Holdings and Guangzhou Zhujiang
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Guangzhou Zhujiang. In addition to that, Capri Holdings is 1.95 times more volatile than Guangzhou Zhujiang Brewery. It trades about -0.06 of its total potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.03 per unit of volatility. If you would invest 821.00 in Guangzhou Zhujiang Brewery on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Guangzhou Zhujiang Brewery or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.65% |
| Values | Daily Returns |
Capri Holdings vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Capri Holdings |
| Guangzhou Zhujiang |
Capri Holdings and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Guangzhou Zhujiang
The main advantage of trading using opposite Capri Holdings and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Guangzhou Zhujiang vs. Shanghai Metersbonwe FashionAccessories | Guangzhou Zhujiang vs. Xiwang Foodstuffs Co | Guangzhou Zhujiang vs. JuneYao Dairy Co | Guangzhou Zhujiang vs. Xiamen Jihong Package |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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