Correlation Between Capri Holdings and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Aristotle Funds 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 Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Aristotle Funds Series, you can compare the effects of market volatilities on Capri Holdings and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Aristotle Funds.
Diversification Opportunities for Capri Holdings and Aristotle Funds
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Aristotle is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Capri Holdings i.e., Capri Holdings and Aristotle Funds go up and down completely randomly.
Pair Corralation between Capri Holdings and Aristotle Funds
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Aristotle Funds. In addition to that, Capri Holdings is 4.15 times more volatile than Aristotle Funds Series. It trades about -0.03 of its total potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.1 per unit of volatility. If you would invest 920.00 in Aristotle Funds Series on September 1, 2024 and sell it today you would earn a total of 134.00 from holding Aristotle Funds Series or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Capri Holdings vs. Aristotle Funds Series
Performance |
| Timeline |
| Capri Holdings |
| Aristotle Funds Series |
Capri Holdings and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Aristotle Funds
The main advantage of trading using opposite Capri Holdings and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Value Eq |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |