Correlation Between Capri Holdings and AXA World
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and AXA World 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 AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and AXA World Funds, you can compare the effects of market volatilities on Capri Holdings and AXA World 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 AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and AXA World.
Diversification Opportunities for Capri Holdings and AXA World
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capri and AXA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds 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 AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of Capri Holdings i.e., Capri Holdings and AXA World go up and down completely randomly.
Pair Corralation between Capri Holdings and AXA World
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the AXA World. In addition to that, Capri Holdings is 7.27 times more volatile than AXA World Funds. It trades about -0.06 of its total potential returns per unit of risk. AXA World Funds is currently generating about -0.01 per unit of volatility. If you would invest 20,974 in AXA World Funds on September 1, 2024 and sell it today you would lose (310.00) from holding AXA World Funds or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Capri Holdings vs. AXA World Funds
Performance |
| Timeline |
| Capri Holdings |
| AXA World Funds |
Capri Holdings and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and AXA World
The main advantage of trading using opposite Capri Holdings and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, AXA World 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 AXA World will offset losses from the drop in AXA World's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| AXA World vs. AXA World Funds | AXA World vs. Esfera Robotics R | AXA World vs. R co Valor F | AXA World vs. CM AM Monplus NE |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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