Correlation Between Capri Holdings and Antec
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Antec 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 Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Antec Inc, you can compare the effects of market volatilities on Capri Holdings and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Antec.
Diversification Opportunities for Capri Holdings and Antec
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and Antec is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Capri Holdings i.e., Capri Holdings and Antec go up and down completely randomly.
Pair Corralation between Capri Holdings and Antec
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Antec. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 1.17 times less risky than Antec. The stock trades about -0.04 of its potential returns per unit of risk. The Antec Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,360 in Antec Inc on November 27, 2024 and sell it today you would earn a total of 750.00 from holding Antec Inc or generate 22.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Capri Holdings vs. Antec Inc
Performance |
| Timeline |
| Capri Holdings |
| Antec Inc |
Capri Holdings and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Antec
The main advantage of trading using opposite Capri Holdings and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Antec vs. Arbor Technology | Antec vs. Central Reinsurance Corp | Antec vs. Min Aik Technology | Antec vs. STL Technology 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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