Correlation Between Capri Holdings and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Cambridge Capital 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 Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Cambridge Capital Holdings, you can compare the effects of market volatilities on Capri Holdings and Cambridge Capital 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 Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Cambridge Capital.
Diversification Opportunities for Capri Holdings and Cambridge Capital
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capri and Cambridge is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital 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 Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of Capri Holdings i.e., Capri Holdings and Cambridge Capital go up and down completely randomly.
Pair Corralation between Capri Holdings and Cambridge Capital
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Cambridge Capital. But the stock apears to be less risky and, when comparing its historical volatility, Capri Holdings is 12.53 times less risky than Cambridge Capital. The stock trades about -0.01 of its potential returns per unit of risk. The Cambridge Capital Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Cambridge Capital Holdings on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Cambridge Capital Holdings or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Capri Holdings vs. Cambridge Capital Holdings
Performance |
| Timeline |
| Capri Holdings |
| Cambridge Capital |
Capri Holdings and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Cambridge Capital
The main advantage of trading using opposite Capri Holdings and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Cambridge Capital 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 Cambridge Capital will offset losses from the drop in Cambridge Capital's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Cambridge Capital vs. South32 Limited | Cambridge Capital vs. NioCorp Developments Ltd | Cambridge Capital vs. HUMANA INC | Cambridge Capital vs. SCOR PK |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |