Correlation Between Capri Holdings and Fillamentum
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Fillamentum 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 Fillamentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Fillamentum as, you can compare the effects of market volatilities on Capri Holdings and Fillamentum 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 Fillamentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Fillamentum.
Diversification Opportunities for Capri Holdings and Fillamentum
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capri and Fillamentum is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Fillamentum as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fillamentum as 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 Fillamentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fillamentum as has no effect on the direction of Capri Holdings i.e., Capri Holdings and Fillamentum go up and down completely randomly.
Pair Corralation between Capri Holdings and Fillamentum
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Fillamentum. In addition to that, Capri Holdings is 15.74 times more volatile than Fillamentum as. It trades about -0.12 of its total potential returns per unit of risk. Fillamentum as is currently generating about 0.16 per unit of volatility. If you would invest 15,500 in Fillamentum as on August 29, 2024 and sell it today you would earn a total of 500.00 from holding Fillamentum as or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Capri Holdings vs. Fillamentum as
Performance |
| Timeline |
| Capri Holdings |
| Fillamentum as |
Capri Holdings and Fillamentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Fillamentum
The main advantage of trading using opposite Capri Holdings and Fillamentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Fillamentum 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 Fillamentum will offset losses from the drop in Fillamentum's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Fillamentum vs. Volkswagen AG | Fillamentum vs. Philip Morris CR | Fillamentum vs. Prabos Plus as | Fillamentum vs. Nokia Oyj |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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