Correlation Between Capri Holdings and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Strategy Shares 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 Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Strategy Shares Gold Hedged, you can compare the effects of market volatilities on Capri Holdings and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Strategy Shares.
Diversification Opportunities for Capri Holdings and Strategy Shares
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Strategy is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Strategy Shares Gold Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares Gold 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 Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares Gold has no effect on the direction of Capri Holdings i.e., Capri Holdings and Strategy Shares go up and down completely randomly.
Pair Corralation between Capri Holdings and Strategy Shares
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Strategy Shares. In addition to that, Capri Holdings is 4.4 times more volatile than Strategy Shares Gold Hedged. It trades about -0.01 of its total potential returns per unit of risk. Strategy Shares Gold Hedged is currently generating about 0.07 per unit of volatility. If you would invest 1,927 in Strategy Shares Gold Hedged on September 2, 2024 and sell it today you would earn a total of 408.00 from holding Strategy Shares Gold Hedged or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.96% |
| Values | Daily Returns |
Capri Holdings vs. Strategy Shares Gold Hedged
Performance |
| Timeline |
| Capri Holdings |
| Strategy Shares Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capri Holdings and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Strategy Shares
The main advantage of trading using opposite Capri Holdings and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Strategy Shares vs. Global Blockchain Acquisition | Strategy Shares vs. First Trust Lunt | Strategy Shares vs. Great Southern Bancorp | Strategy Shares vs. RiverFront Strategic Income |
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 Stocks Directory module to find actively traded stocks across global markets.
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