Correlation Between Capri Holdings and Hvidbjerg Bank
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Hvidbjerg Bank 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 Hvidbjerg Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Hvidbjerg Bank, you can compare the effects of market volatilities on Capri Holdings and Hvidbjerg Bank 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 Hvidbjerg Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Hvidbjerg Bank.
Diversification Opportunities for Capri Holdings and Hvidbjerg Bank
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capri and Hvidbjerg is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Hvidbjerg Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hvidbjerg Bank 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 Hvidbjerg Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hvidbjerg Bank has no effect on the direction of Capri Holdings i.e., Capri Holdings and Hvidbjerg Bank go up and down completely randomly.
Pair Corralation between Capri Holdings and Hvidbjerg Bank
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Hvidbjerg Bank. In addition to that, Capri Holdings is 2.28 times more volatile than Hvidbjerg Bank. It trades about -0.26 of its total potential returns per unit of risk. Hvidbjerg Bank is currently generating about 0.03 per unit of volatility. If you would invest 13,400 in Hvidbjerg Bank on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Hvidbjerg Bank or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Capri Holdings vs. Hvidbjerg Bank
Performance |
| Timeline |
| Capri Holdings |
| Hvidbjerg Bank |
Capri Holdings and Hvidbjerg Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Hvidbjerg Bank
The main advantage of trading using opposite Capri Holdings and Hvidbjerg Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Hvidbjerg Bank 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 Hvidbjerg Bank will offset losses from the drop in Hvidbjerg Bank's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Hvidbjerg Bank vs. Skjern Bank AS | Hvidbjerg Bank vs. Lollands Bank | Hvidbjerg Bank vs. Djurslands Bank | Hvidbjerg Bank vs. Nordfyns Bank AS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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