Correlation Between Capri Holdings and Argo Pantes
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Argo Pantes 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 Argo Pantes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Argo Pantes Tbk, you can compare the effects of market volatilities on Capri Holdings and Argo Pantes 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 Argo Pantes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Argo Pantes.
Diversification Opportunities for Capri Holdings and Argo Pantes
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Argo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Argo Pantes Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Pantes Tbk 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 Argo Pantes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Pantes Tbk has no effect on the direction of Capri Holdings i.e., Capri Holdings and Argo Pantes go up and down completely randomly.
Pair Corralation between Capri Holdings and Argo Pantes
Given the investment horizon of 90 days Capri Holdings is expected to generate 0.58 times more return on investment than Argo Pantes. However, Capri Holdings is 1.71 times less risky than Argo Pantes. It trades about -0.04 of its potential returns per unit of risk. Argo Pantes Tbk is currently generating about -0.05 per unit of risk. If you would invest 2,352 in Capri Holdings on November 27, 2024 and sell it today you would lose (222.00) from holding Capri Holdings or give up 9.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.55% |
| Values | Daily Returns |
Capri Holdings vs. Argo Pantes Tbk
Performance |
| Timeline |
| Capri Holdings |
| Argo Pantes Tbk |
Capri Holdings and Argo Pantes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Argo Pantes
The main advantage of trading using opposite Capri Holdings and Argo Pantes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Argo Pantes 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 Argo Pantes will offset losses from the drop in Argo Pantes' long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Argo Pantes vs. Sepatu Bata Tbk | Argo Pantes vs. Ever Shine Textile | Argo Pantes vs. Eratex Djaja Tbk | Argo Pantes vs. PT Century Textile |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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