Correlation Between Capri Holdings and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Blackstone Secured 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 Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Blackstone Secured Lending, you can compare the effects of market volatilities on Capri Holdings and Blackstone Secured 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 Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Blackstone Secured.
Diversification Opportunities for Capri Holdings and Blackstone Secured
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Blackstone is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured 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 Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of Capri Holdings i.e., Capri Holdings and Blackstone Secured go up and down completely randomly.
Pair Corralation between Capri Holdings and Blackstone Secured
Given the investment horizon of 90 days Capri Holdings is expected to generate 3.67 times more return on investment than Blackstone Secured. However, Capri Holdings is 3.67 times more volatile than Blackstone Secured Lending. It trades about 0.26 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.24 per unit of risk. If you would invest 1,974 in Capri Holdings on September 1, 2024 and sell it today you would earn a total of 367.00 from holding Capri Holdings or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Blackstone Secured Lending
Performance |
| Timeline |
| Capri Holdings |
| Blackstone Secured |
Capri Holdings and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Blackstone Secured
The main advantage of trading using opposite Capri Holdings and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Blackstone Secured 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 Blackstone Secured will offset losses from the drop in Blackstone Secured's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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