Correlation Between Capri Holdings and China Shenhua
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By analyzing existing cross correlation between Capri Holdings and China Shenhua Energy, you can compare the effects of market volatilities on Capri Holdings and China Shenhua 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 China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and China Shenhua.
Diversification Opportunities for Capri Holdings and China Shenhua
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and China is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy 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 China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Capri Holdings i.e., Capri Holdings and China Shenhua go up and down completely randomly.
Pair Corralation between Capri Holdings and China Shenhua
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the China Shenhua. In addition to that, Capri Holdings is 2.75 times more volatile than China Shenhua Energy. It trades about -0.26 of its total potential returns per unit of risk. China Shenhua Energy is currently generating about -0.64 per unit of volatility. If you would invest 4,000 in China Shenhua Energy on November 27, 2024 and sell it today you would lose (424.00) from holding China Shenhua Energy or give up 10.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Capri Holdings vs. China Shenhua Energy
Performance |
| Timeline |
| Capri Holdings |
| China Shenhua Energy |
Capri Holdings and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and China Shenhua
The main advantage of trading using opposite Capri Holdings and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| China Shenhua vs. Haima Automobile Group | China Shenhua vs. CIMC Vehicles Co | China Shenhua vs. Changchun Engley Automobile | China Shenhua vs. Zhejiang Qianjiang Motorcycle |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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