Correlation Between Capri Holdings and AltShares Trust
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and AltShares Trust 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 AltShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and AltShares Trust , you can compare the effects of market volatilities on Capri Holdings and AltShares Trust 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 AltShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and AltShares Trust.
Diversification Opportunities for Capri Holdings and AltShares Trust
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capri and AltShares is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and AltShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltShares Trust 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 AltShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltShares Trust has no effect on the direction of Capri Holdings i.e., Capri Holdings and AltShares Trust go up and down completely randomly.
Pair Corralation between Capri Holdings and AltShares Trust
Given the investment horizon of 90 days Capri Holdings is expected to generate 13.27 times more return on investment than AltShares Trust. However, Capri Holdings is 13.27 times more volatile than AltShares Trust . It trades about 0.1 of its potential returns per unit of risk. AltShares Trust is currently generating about 0.01 per unit of risk. If you would invest 2,139 in Capri Holdings on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Capri Holdings or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. AltShares Trust
Performance |
| Timeline |
| Capri Holdings |
| AltShares Trust |
Capri Holdings and AltShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and AltShares Trust
The main advantage of trading using opposite Capri Holdings and AltShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, AltShares Trust 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 AltShares Trust will offset losses from the drop in AltShares Trust's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| AltShares Trust vs. Albany International | AltShares Trust vs. Acadia Realty Trust | AltShares Trust vs. AptarGroup | AltShares Trust vs. Applied Industrial Technologies |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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