Correlation Between Capri Holdings and Shinhan Dollar
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Shinhan Dollar 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 Shinhan Dollar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Shinhan Dollar Index, you can compare the effects of market volatilities on Capri Holdings and Shinhan Dollar 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 Shinhan Dollar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Shinhan Dollar.
Diversification Opportunities for Capri Holdings and Shinhan Dollar
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capri and Shinhan is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Shinhan Dollar Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Dollar Index 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 Shinhan Dollar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Dollar Index has no effect on the direction of Capri Holdings i.e., Capri Holdings and Shinhan Dollar go up and down completely randomly.
Pair Corralation between Capri Holdings and Shinhan Dollar
Given the investment horizon of 90 days Capri Holdings is expected to generate 8.29 times more return on investment than Shinhan Dollar. However, Capri Holdings is 8.29 times more volatile than Shinhan Dollar Index. It trades about 0.19 of its potential returns per unit of risk. Shinhan Dollar Index is currently generating about 0.31 per unit of risk. If you would invest 2,048 in Capri Holdings on August 30, 2024 and sell it today you would earn a total of 304.00 from holding Capri Holdings or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Capri Holdings vs. Shinhan Dollar Index
Performance |
| Timeline |
| Capri Holdings |
| Shinhan Dollar Index |
Capri Holdings and Shinhan Dollar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Shinhan Dollar
The main advantage of trading using opposite Capri Holdings and Shinhan Dollar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Shinhan Dollar 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 Shinhan Dollar will offset losses from the drop in Shinhan Dollar's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Shinhan Dollar vs. Shinhan Inverse Dollar | Shinhan Dollar vs. Shinhan BNP Paribas | Shinhan Dollar vs. Shinhan Copper Futures | Shinhan Dollar vs. Shinhan Gold Futures |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |