Correlation Between Capri Holdings and ProShares Nasdaq
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and ProShares Nasdaq 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 ProShares Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and ProShares Nasdaq 100 High, you can compare the effects of market volatilities on Capri Holdings and ProShares Nasdaq 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 ProShares Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and ProShares Nasdaq.
Diversification Opportunities for Capri Holdings and ProShares Nasdaq
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capri and ProShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and ProShares Nasdaq 100 High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Nasdaq 100 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 ProShares Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Nasdaq 100 has no effect on the direction of Capri Holdings i.e., Capri Holdings and ProShares Nasdaq go up and down completely randomly.
Pair Corralation between Capri Holdings and ProShares Nasdaq
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the ProShares Nasdaq. In addition to that, Capri Holdings is 3.73 times more volatile than ProShares Nasdaq 100 High. It trades about -0.02 of its total potential returns per unit of risk. ProShares Nasdaq 100 High is currently generating about 0.07 per unit of volatility. If you would invest 3,805 in ProShares Nasdaq 100 High on August 30, 2024 and sell it today you would earn a total of 478.00 from holding ProShares Nasdaq 100 High or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.56% |
| Values | Daily Returns |
Capri Holdings vs. ProShares Nasdaq 100 High
Performance |
| Timeline |
| Capri Holdings |
| ProShares Nasdaq 100 |
Capri Holdings and ProShares Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and ProShares Nasdaq
The main advantage of trading using opposite Capri Holdings and ProShares Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, ProShares Nasdaq 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 ProShares Nasdaq will offset losses from the drop in ProShares Nasdaq's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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