Correlation Between Capri Holdings and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Icecure Medical 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 Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Icecure Medical, you can compare the effects of market volatilities on Capri Holdings and Icecure Medical 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 Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Icecure Medical.
Diversification Opportunities for Capri Holdings and Icecure Medical
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and Icecure is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical 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 Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Capri Holdings i.e., Capri Holdings and Icecure Medical go up and down completely randomly.
Pair Corralation between Capri Holdings and Icecure Medical
Given the investment horizon of 90 days Capri Holdings is expected to generate 2.72 times less return on investment than Icecure Medical. But when comparing it to its historical volatility, Capri Holdings is 2.17 times less risky than Icecure Medical. It trades about 0.13 of its potential returns per unit of risk. Icecure Medical is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Icecure Medical on August 29, 2024 and sell it today you would earn a total of 17.22 from holding Icecure Medical or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Icecure Medical
Performance |
| Timeline |
| Capri Holdings |
| Icecure Medical |
Capri Holdings and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Icecure Medical
The main advantage of trading using opposite Capri Holdings and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Icecure Medical 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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