Correlation Between Capri Holdings and BANK OF AFRICA
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By analyzing existing cross correlation between Capri Holdings and BANK OF AFRICA, you can compare the effects of market volatilities on Capri Holdings and BANK OF AFRICA 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 BANK OF AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and BANK OF AFRICA.
Diversification Opportunities for Capri Holdings and BANK OF AFRICA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capri and BANK is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and BANK OF AFRICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF AFRICA 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 BANK OF AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF AFRICA has no effect on the direction of Capri Holdings i.e., Capri Holdings and BANK OF AFRICA go up and down completely randomly.
Pair Corralation between Capri Holdings and BANK OF AFRICA
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the BANK OF AFRICA. In addition to that, Capri Holdings is 1.79 times more volatile than BANK OF AFRICA. It trades about -0.23 of its total potential returns per unit of risk. BANK OF AFRICA is currently generating about -0.08 per unit of volatility. If you would invest 20,800 in BANK OF AFRICA on November 28, 2024 and sell it today you would lose (800.00) from holding BANK OF AFRICA or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Capri Holdings vs. BANK OF AFRICA
Performance |
| Timeline |
| Capri Holdings |
| BANK OF AFRICA |
Capri Holdings and BANK OF AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and BANK OF AFRICA
The main advantage of trading using opposite Capri Holdings and BANK OF AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, BANK OF AFRICA 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 BANK OF AFRICA will offset losses from the drop in BANK OF AFRICA's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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