Correlation Between Capri Holdings and Chenming Mold
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Chenming Mold 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 Capri Holdings and Chenming Mold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Chenming Mold Industrial, you can compare the effects of market volatilities on Capri Holdings and Chenming Mold 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 Chenming Mold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Chenming Mold.
Diversification Opportunities for Capri Holdings and Chenming Mold
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capri and Chenming is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Chenming Mold Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenming Mold 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 Chenming Mold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenming Mold Industrial has no effect on the direction of Capri Holdings i.e., Capri Holdings and Chenming Mold go up and down completely randomly.
Pair Corralation between Capri Holdings and Chenming Mold
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Chenming Mold. In addition to that, Capri Holdings is 1.19 times more volatile than Chenming Mold Industrial. It trades about -0.31 of its total potential returns per unit of risk. Chenming Mold Industrial is currently generating about 0.35 per unit of volatility. If you would invest 12,850 in Chenming Mold Industrial on November 28, 2024 and sell it today you would earn a total of 2,100 from holding Chenming Mold Industrial or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Capri Holdings vs. Chenming Mold Industrial
Performance |
| Timeline |
| Capri Holdings |
| Chenming Mold Industrial |
Capri Holdings and Chenming Mold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Chenming Mold
The main advantage of trading using opposite Capri Holdings and Chenming Mold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Chenming Mold 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 Chenming Mold will offset losses from the drop in Chenming Mold's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Chenming Mold vs. Clevo Co | Chenming Mold vs. Zinwell | Chenming Mold vs. Min Aik Technology | Chenming Mold vs. Promise Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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