Correlation Between Capri Holdings and Xian LONGi
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By analyzing existing cross correlation between Capri Holdings and Xian LONGi Silicon, you can compare the effects of market volatilities on Capri Holdings and Xian LONGi 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 Xian LONGi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Xian LONGi.
Diversification Opportunities for Capri Holdings and Xian LONGi
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Xian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Xian LONGi Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian LONGi Silicon 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 Xian LONGi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian LONGi Silicon has no effect on the direction of Capri Holdings i.e., Capri Holdings and Xian LONGi go up and down completely randomly.
Pair Corralation between Capri Holdings and Xian LONGi
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Xian LONGi. In addition to that, Capri Holdings is 1.45 times more volatile than Xian LONGi Silicon. It trades about -0.23 of its total potential returns per unit of risk. Xian LONGi Silicon is currently generating about 0.42 per unit of volatility. If you would invest 1,490 in Xian LONGi Silicon on November 28, 2024 and sell it today you would earn a total of 253.00 from holding Xian LONGi Silicon or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Capri Holdings vs. Xian LONGi Silicon
Performance |
| Timeline |
| Capri Holdings |
| Xian LONGi Silicon |
Capri Holdings and Xian LONGi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Xian LONGi
The main advantage of trading using opposite Capri Holdings and Xian LONGi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Xian LONGi 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 Xian LONGi will offset losses from the drop in Xian LONGi's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Xian LONGi vs. Qingdao Foods Co | Xian LONGi vs. Servyou Software Group | Xian LONGi vs. Xiamen Jihong Package | Xian LONGi vs. Glodon Software Co |
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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