Correlation Between Capri Holdings and PT Puri
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and PT Puri 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 PT Puri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and PT Puri Sentul, you can compare the effects of market volatilities on Capri Holdings and PT Puri 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 PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and PT Puri.
Diversification Opportunities for Capri Holdings and PT Puri
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capri and KDTN is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul 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 PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Capri Holdings i.e., Capri Holdings and PT Puri go up and down completely randomly.
Pair Corralation between Capri Holdings and PT Puri
Given the investment horizon of 90 days Capri Holdings is expected to generate 0.8 times more return on investment than PT Puri. However, Capri Holdings is 1.25 times less risky than PT Puri. It trades about 0.23 of its potential returns per unit of risk. PT Puri Sentul is currently generating about -0.14 per unit of risk. If you would invest 2,010 in Capri Holdings on September 2, 2024 and sell it today you would earn a total of 331.00 from holding Capri Holdings or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. PT Puri Sentul
Performance |
| Timeline |
| Capri Holdings |
| PT Puri Sentul |
Capri Holdings and PT Puri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and PT Puri
The main advantage of trading using opposite Capri Holdings and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, PT Puri 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 PT Puri will offset losses from the drop in PT Puri's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| PT Puri vs. PT Primadaya Plastisindo | PT Puri vs. PT Ketrosden Triasmitra | PT Puri vs. Menthobi Karyatama Raya | PT Puri vs. Jayamas Medica Industri |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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